Automotive News reported that Volkswagen, worth $1.09 billion, has delayed the decision to build a new Turkish car factory due to international opposition from Syria’s military operations. According to the company, it is monitoring “the current situation” and “looking with concern at current developments.” This topic will be discussed at the supervisory board’s next meeting in mid-November.
The Volkswagen Passat is already available in Europe, but the new D-segment versions are expected to be released within the next few years. These are going to be produced at a new facility located in Turkey according to a report by Automotive News.
According to “an internal document,” Volkswagen chose Turkey over Bulgaria as the location for its new plant in Eastern Europe. The country’s “positive macroeconomic circumstances” and the 80 million people with access to a new car market are two of the key factors in that decision. A VW spokesperson confirmed that the company is still in “final stages” of negotiations.
Volkswagen announced the following in November 2012: “Production of Volkswagen Passat will be transferred to the SKODA plant, Kvasiny, Czech Republic. These models will be constructed there along with the SKODA Superb, and Kodiaq, starting in 2023. SKODA Karoq, and SEAT Ateca will be moved to a new Group multibrand plant. The Group is searching for a new location in Eastern Europe.
Automotive News reports that the new factory will be situated approximately 25 miles (40 km) northeast of Izmir. Production at the $1.09 billion site will begin sometime in 2022. The potential peak annual production is around 300,000. AutoNews projects that the plant will create approximately 4,000 jobs with the help of the nearby suppliers and employees.
The Volkswagen Passat is currently constructed in Emden. In the future, the company will begin making electric cars. Skoda Superb is a Czech company’s Kvasiny facility. The initial details indicate that Volkswagen will manage the new Turkey manufactory, accounting for approximately two-thirds the production volume by the Passat.
According to the online publication, the Turkish domestic car market dropped by a significant amount to 212 605 vehicles in the first seven months. Two years ago, 481,982 vehicles were sold in the same time frame.