Kia seeks to take over Brazil operations and negotiate factory construction

South‑Korean automaker Kia is in talks with the Brazilian government to assume direct control of its brand in Brazil, ending a 34‑year partnership with the Gandini Group led by José Luiz Gandini. The negotiations aim to resolve a legacy tax liability linked to the former Asia Motors, cited at roughly R$ 6 billion, in exchange for permission to build a new Kia plant.

The proposed factory would be located beside Hyundai’s existing facility in Piracicaba, São Paulo, and is slated for completion around 2028. Officials estimate the investment could create about 5,000 direct jobs and an additional 15,000 indirect positions. A transition of the distribution business is expected to be finalized by the end of the year, pending the outcome of the debt‑forgiveness and plant‑construction agreements.