Speculation in Turkey is mounting about sizeable new – and as yet officially unnamed – investors in Turkey’s burgeoning automotive industry.
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Cabinet minister Mr Zafer Caglayan (who has responsibility for industry and commerce) said late last year that ‘two big global companies’ are willing to make automotive investments in Turkey.
Mr Caglayan said that the total investment figure would be approximately USD1.4bn and that talks continued. But he never named names.
That sparked speculation in the industry and across all sections of Turkey’s media including national newspapers and TV stations. Officials at sector governing bodies such as Automotive Manufacturing Association (OSD) or Vehicle Suppliers Association (TAYSAD) have been at the centre of intense media attention.
Multiple sources point to Magna International. According to the sources Magna is looking for the opportunity to make Turkey a major supply base and may possibly establish a factory to build cars under contract for other OEMs.
Magna is said to have selected the city of Tekirdag, close to Istanbul, as its manufacturing location.
According to the sources, the Magna investment planned for Turkey is USD400m dollars. Magna has stayed quiet on the rumours.
Cabinet minister Mr Caglayan has not denied the name of Magna in a TV interview but he said that the talks with the other big investor still underway. Also, he said that the official statement would come from Prime Minister Recep Tayip Erdogan.
Approximately four weeks has passed and the silence continues, as does speculation.
Besides Magna, other names mentioned include Toyota, Volkswagen, PSA Peugeot Citroen, General Motors and even Chinese manufacturer Chery.
Levent KOPRULU
See also: TURKEY: 2007 vehicle production up 11.3% to over a million units
