Kia to Consolidate Operations in Irvine

There’s another consolidation in the works, although nobody is publicly acknowledging it yet.

Look for South Koran auto importer Kia Motors America Inc. to pull all of its Irvine-based operations back into its headquarters at 2 Technology Drive early this summer.

The company’s South Korean parent is bankrupt. Although the consolidation here could save a few bucks a month in rent, that’s not the main reason for the move, insiders say. Instead, Kia is looking to improve communications by keeping everyone under the same roof.

Another thing the consolidation probably has little to do with are persistent rumors that Ford Motor Co., which already holds a 17% stake in Kia, is about to take control of the company--South Korea’s second-largest car maker.

If that happens, however, Ford will have a little auto empire in Irvine and Kia’s consolidation will make it that much easier for Ford to keep things under its wing.

Ford also controls Mazda Motor Corp., whose North American operations are headquartered in Irvine less the 5 miles from Kia’s offices. Ford also is relocating the world headquarters of its Lincoln Mercury division to Irvine this summer and will build a headquarters facility next door to Mazda. The lineup has Irvine Co.’s real estate development and leasing people dreaming dreams of developing Detroit West in the Irvine Spectrum. Already, they are collecting data on all the automotive business--including design studios, parts manufacturers and service companies--in the region to see if there’s enough there for a marketing campaign.

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John O’Dell covers major Orange County corporations and manufacturing for The Times. He can be reached at (714) 966-5831 and at john.odell@latimes.com.