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July 1, 2020

Volkswagen decides against Turkish factory – reports

Volkswagen reportedly has decided against building a new factory in Turkey.

By Olly Wehring

Volkswagen reportedly has decided against building a new factory in Turkey.

The news was reported by Germany's Automobilwoche on Wednesday, citing sources at VW.

In October last year, Volkswagen put a decision about the plant on hold amid international criticism about the country's military operations in Syria, Reuters noted.

Volkswagen was not immediately available for comment to the news agency.

Last October, Andreas Tostmann, VW's production chief, told media Volkswagen was not scouting for alternative locations as it evaluated plans to build a new car factory in Turkey.

"We are watching developments. Plans for Turkey are currently on hold. We are not actively looking at alternative locations," Tostmann said.

The Putin-Erdogan agreement on 23 October had decreased the chances for VW to relocate its planned plant out of Turkey, a Romanian media report said.

Paula Pirvanescu, a state secretary in the ministry of business environment (MMACA), claimed at the time Romania had made the best offer to VW for hosting the planned new car plant.

He told the Auto Industry Forum 2019 in Bucharest "the final decisions are made at a higher level" – not involving the ministry or the investment agency.

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