The Volkswagen is postponing the decision to build a plant in Turkey
German media reports that the management of the Volkswagen car group is delaying its final decision to build a plant in Turkey.
This decision was dictated by the Turkish offensive in Syria, which is still unknown.
According to the plan, the German company agreed to build its plant in Turkey near Izmir, but after the recent military events, Volkswagen management is in no hurry to sign contracts with the Turkish government.
Volkswagen could be fined up to 1 billion euros if it chooses Turkey
“We are watching the situation with great caution,” a spokesman for Volkswagen told Handelsblatt.
The other participant in the race for the car factory was Bulgaria. Former President of the Balkan Republic and current Chairman of the Automobile Cluster in Bulgaria, Mr. Rosen Plevneliev, told reporters that the country would bring a complaint to the European Commission about Turkey’s failure to comply with common market rules.
New Passat and Skoda Superb models are planned to be manufactured at the new Manisa plant located near the Izmir port. Volkswagen will invest EUR 1 billion in the plant. With 4,000 employees planned, after 2022, the plant will have to produce 300,000 vehicles a year. To this end, Volkswagen has registered a subsidiary in Manisa with a capital of EUR 150 million.
Photo source: Investor