S.Korea's Kia considers making SUV at U.S. plant

SEOUL, May 6 (Reuters) - Kia Motors Corp (000270.KS: Quote, Profile, Research, Stock Buzz), South Korea's No.2 auto maker, is considering producing a sports utility vehicle (SUV) in its first U.S. factory, a company official said on Tuesday.

Kia is building a car plant in the state of Georgia, which will be completed by the end of 2009, with a $1.2 billion investment.

The Hyundai Motor Co (005380.KS: Quote, Profile, Research, Stock Buzz) affiliate has not decided which models to produce at the factory, which will have a capacity of 300,000 vehicles a year.

"We are mulling making the next model of the Sorento in the United States as demand for such SUVs is strong there, although the overall SUV market is sluggish," the official, who asked not to be identified, told Reuters.

Kia plans to release the next model of its SUV Sorento, which has a 2,500 cc engine, in 2009.

U.S. SUV sales have been falling as record-breaking oil prices encourage customers to favour more fuel-efficient vehicles.

Shares in Kia fell 1.89 percent to 12,950 won as of 0205 GMT, underperforming a 0.02 percent gain in the wider market index . (Reporting by Cheon Jong-woo; Editing by Edmund Klamann)