Subsidiary was already established: VW buried plans for new Turkey plant

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Volkswagen estimates an investment volume of more than one billion euros for a plant in Turkey. But construction is delayed several times – officially because of the Turkish military offensive in northern Syria. Now the largest German car company is rejecting its plans for another reason.
The Volkswagen Group stops plans to build a new plant in Turkey. “The background is the slump in global automotive demand caused by the Corona crisis,” said the largest German automobile manufacturer in Wolfsburg. The project for the factory in Manisa near Izmir was actually as good as decided, but had recently been put on hold.

VW benefits 134.58

Officially, the project has been put on hold since Turkey’s military operations in northern Syria began in autumn 2019. There was criticism of the plan to open a new multi-brand factory in a country with a delicate human rights situation.

VW had said several times that they were in “final” talks. The company also founded a Turkish subsidiary. The company was entered in the commercial register and had capital equivalent to approximately $ 164 million.

Volkswagen wanted to invest more than one billion euros in the plant near the west coast metropolis of Izmir, with a capacity of more than 300,000 vehicles annually. It was also planned to create 4,000 jobs in western Turkey.

Under the conditions before Corona, the new plant was to serve future growth, especially in Eastern Europe and the Middle East. Now all planned vehicle projects within the existing network are to be manufactured at production sites. Before the pandemic, the group wanted to create new capacities for the Passat previously manufactured in Emden and the Superb of its sister brand Skoda.



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https://www.n-tv.de/wirtschaft/VW-beerdigt-Plaene-fuer-neues-Tuerkei-Werk-article21883356.html

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