Production set for Gwangmyeong Plant 1, making Kia second after Hyundai Motor

Hanam factory to shift to military vehicle production

Union demands additional models including Telluride

The exterior of the Carnival Hi-Roof [Kia]
The exterior of the Carnival Hi-Roof [Kia]

Kia is set to follow Hyundai Motor into hydrogen fuel cell electric vehicle (FCEV) production, with plans to add an FCEV variant to the next-generation Carnival lineup and begin manufacturing it at Gwangmyeong Plant 1 in 2029.

The Kia unit of the Korean Metal Workers' Union said Monday that labor and management recently reached an agreement on the plan at a joint employment stability committee. It will be the first time Kia has produced an FCEV; Hyundai Motor already manufactures the Nexo FCEV.

The two sides also finalized production plans for other plants. Gwangju Plant 3 will be restructured to build a new electric SUV, codenamed "NV," from 2029 — a model widely expected to be the mid-size electric SUV known as the EV7. Gwangju Plant 2 will produce the Sportage successor from 2027, while Hwaseong Plant 1 will handle a full model change of the Sorento from 2028. The Hanam factory, which currently makes buses, will be converted into a dedicated military vehicle plant, and Kia plans to exit the large bus business.

Labor and management also agreed to pursue a total investment of 1 trillion won ($755 million) and hire 915 new workers.

However, production shortfalls at some plants remain unresolved. A union official said production lines at Hwaseong Plants 1 and 3 have been running empty — without vehicles to build — for years, with a daily shortfall of 100 to 300 units, while Gwangmyeong Plant 2 is short by about 200 units a day.

The union said it had demanded that Kia assign additional models to those plants, including domestic production of the Telluride, which is currently built in the United States, but the company declined.

Kia's entry into hydrogen vehicle production comes as the domestic market continues to grow. Hyundai Motor surpassed cumulative domestic sales of 50,000 hydrogen fuel cell vehicles in September — eight years after launching the Nexo in 2018. Total sales through September stood at 50,262 units.


eyre@heraldcorp.com