The fate of the Kia Motors Corporation Middle Eastern automobile assembly plant depends on the company’s ability to put a local procurement plan into effect, meaning Kia would purchase at least 50% of auto parts from reliable local suppliers. This message was relayed by the general manager of Kia Israel general manager Cho Sang-un, in an interview with the "Asia Times."
Last week, Kia opened Kia Intertrade, a Tel Aviv-based Middle East trading company to seek trade and investment opportunities in the region. The general manager said in the interview: "We are interested in setting up a car assembly plant here - though we have not decided where exactly, in Israel, in Gaza or in Jordan." Cho said feasibility studies were still being conducted and no formal agreement had been signed.
Kia started selling cars in Israel in 1995, one year after fellow South Korean manufacturers Hyundai and Daewoo. Last year it racked up Israeli sales of 3,000 vehicles, or about $45 million.
Cho did not reveal the amount of estimated investment in such a project, saying that everything would depend on the car model to be assembled in the Middle East plant.
Cho also said that perhaps Kia could import electronics to Israel. "The Israeli market is certainly the most developed," he said. "They use a great deal of cellular phones and other electronic goods. Though this is not something that we make, maybe we can also arrange the supply of these products to Israel."
He added: "What we can do here is develop a product in Israel, and sell it to other markets in Latin America, Europe or the United States," said Cho. According to "Asia Times," such project development is likely to involve investment in Israel's high-tech sector.