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The plan was presented through wage negotiations by Hyundai Motor Group’s car production unit with its unionized workers.
Kia will build this particular new facility for large-scale PBV production, dubbed LW. Production is expected to begin in 2028.
This progression is expected to develop Kia’s ability to be more competitive in the domestic market in the future.
The automaker, which makes the EV6 and EV9 electric vehicle (EV) models, plans to identify the plant at its production in Hwaseong, 80 km southwest of the capital, Seoul.
Industry resources told the Korea Economic Daily: “The company will first have to secure its production capacity to dominate the market faster than others.
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“It would have to make an ambitious investment that exceeds market expectations, as it has already gained consumers in logistics sectors such as Coupang and CJ Logistics. “
In early April this year, Kia started the structure of its first PBV plant in the complex with an investment of one billion won.
The company intends to manufacture approximately 150,000 sets per year of a midsize vehicle, recently dubbed SW, at the plant, which is expected to be the first committed VB facility and South Korea’s first plant exclusively for electric vehicles.
The facility is expected to start production in the second half of 2025.
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