Volkswagen reportedly decides after all to build plant in Turkey

Volkswagen reportedly decides after all to build plant in Turkey
VW is apparently hopeful Turkish officials will order many locally produced Passat limousine models.
By bne IntelliNews July 23, 2019

Volkswagen has finally made a decision on the location for a new auto production plant it is to build outside Germany and it has picked Turkey, German state media outlet ARD reported.

The factory will be established in the western Turkish province of Manisa, it added, citing German government officials.

Earlier reports suggested Turkey and Bulgaria were the potential candidates for the VW investment with the German giant dropping Turkey because the Erdogan administration did not accept conditions Volkswagen put forward. The latest report suggests that the Turkish government accepted all VW’s demands but did not say what those were.

According to ARD, VW finally decided to build the factory in Turkey because of the size of the local auto market, even though labour costs are much lower in Bulgaria.

VW calculates that it could sell as many as 40,000 Passat model units annually in Turkey. The carmaker also took into account the fact that the Passat limousine version is highly popular among Turkish officials and the government might buy this model in considerable quantities for official use, ARD said.

The Manisa plant will also produce Skoda and Seat models of VW group subsidiaries.

If VW officially announces the Turkey investment, the Ankara government will boast that the decision represents foreign investors’ maintaining confidence in the Turkish economy, despite its present travails.

The agreement for VW’s Turkish plant will be inked in September or October this year, ARD said. 

Related Articles

Turkish e-commerce platform Trendyol in talks to raise $2bn investment

Turkish e-commerce marketplace Trendyol, backed by Chinese internet giant Alibaba, is reportedly in discussions to raise $2bn from investors. Trendyol is the largest e-commerce platform in Turkey. ... more

Turkey risks displeasing US with refugee camp airstrike, new move to shut opposition party and Kabul airport security demands

Turkey risks displeasing the US in a number of new areas ahead of next week’s June 14 Nato summit in Brussels on the sidelines of which Turkish President Recep Tayyip Erdogan will meet American ... more

Amid virus difficulties Turkey’s Erdogan to raise tourism with Boris Johnson on sidelines of Nato summit

Turkey’s President Recep Tayyip Erdogan on June 1 said he intended to hold talks on tourism with British Prime Minister Boris Johnson on the sidelines of the upcoming June 14 Nato summit in ... more

Dismiss