Some good news: Georgia’s new automaker makes profits

With all the distressing economic news out there, I thought I’d highlight a positive one today.

Kia Motors, which is scheduled to begin production next month in West Point, posted a $339 million quarterly profit — it’s highest ever, the Associated Press reported.

As you know, many automakers have been bathing in red ink lately.

Kia said its global auto sales jumped in the third quarter, rising 30 percent from last year to 279,969 vehicles, AP reported.

For the first nine months of the year, the South Korean automaker said net profit surged, revenue rose 12 percent and auto sales increased 6.8 percent.

The plant in West Point will start off producing the Sorento crossover utility vehicle with 1,200 employees working one shift. If sales go well, execs are hoping to add another shift next year.

Has Georgia landed a winner?

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5 comments Add your comment

hop

October 23rd, 2009
8:16 am

this is a huge win for the state with prospects that with the second line employment at the new plant reaching 3ooo-4000 employees,with additional 2-3000 workers coming from the support companies.

this was a great prize that GOVERNOR SONNY achieved against competition from bordering states!

Fred

October 23rd, 2009
8:49 am

I hope that Kia has the flexibility in this plant to switch production quickly to small fuel efficient cars.

Oil will more than likely spike again and we $4.00 a gallon gas will be here to stay. The SUV is a relic in
and more than likely will disappear from the landscape.

jw

October 23rd, 2009
8:50 am

but – the Great State of Georgia sold their souls to the devil to get the plant – all the tax breaks and incentives that were given to lure them to the area might come back to bite us in the rear down the road – wait, it already has – plus Kia/Huyandi is in a lot of legal troubles in Korea – hope it works out and hope we can see continued economical growth in that area of the state – they have had a hard time and this is the kind of opportunity the southwest corner needs! Good luck – just wait a little while before we give Gov Bubba a big trophy -

Tom

October 24th, 2009
8:08 pm

Don’t fool yourself in thinking that the state paid too much for the Kia plant. Those good paying jobs will pay off, hopefully, for decades to come. And many nof those concessions were based on tax exclusions, which would have never been collected in the first place if the state hadn’t landed the plant. I assure you that there are 49 other states that would have given their eye teeth for it, but missed out because they weren’t aggressive enough.

Concrete guy

October 25th, 2009
10:20 pm

nice that a successful automaker has established a stronghold in GA. Sad that Ford and GM couldn’t make it.