German car manufacturer Volkswagen has made the long-awaited decision to open a new factory in Turkey’s western province of Manisa.
Turkey beat out the other lead contender, Hungary, despite higher labour costs, because Volkswagen wished to tap Turkey’s large domestic market for cars.
The car manufacturer believes it can sell up to 40,000 of its Passat model in Turkey annually, and could also get lucrative orders from government organisations for its Passat-model limousines, it said.
The plant will reportedly also produce vehicles for Volkswagen subsidiaries Skoda and Seat. Investment costs are estimated at between 1.3 billion euros ($1.5 billion) and 2 billion euros, FAZ said.
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Turkey beat out the other lead contender, Hungary, despite higher labour costs, because Volkswagen wished to tap Turkey’s large domestic market for cars.
The car manufacturer believes it can sell up to 40,000 of its Passat model in Turkey annually, and could also get lucrative orders from government organisations for its Passat-model limousines, it said.
The plant will reportedly also produce vehicles for Volkswagen subsidiaries Skoda and Seat. Investment costs are estimated at between 1.3 billion euros ($1.5 billion) and 2 billion euros, FAZ said.
Ahcars news
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