Volkswagen car brand

Volkswagen cancels plans for a factory in Turkey due to coronavirus

The German multinational announced the suspension of the plan to open a car factory in the province of Manisa, the same day that Turkey launched an investigation against the Volkswagen Group.

German carmaker Volkswagen announced on July 1 the withdrawal of its plans to open a new car manufacturing plant in Turkey due to falling demand for new vehicles caused by the coronavirus pandemic.

A spokesman for the multinational confirmed that the decision had been made due to the impact that the global car market has suffered due to the COVID-19 pandemic, while the Turkish authorities have confirmed that Volkswagen has suspended its plans for the new plant due to the uncertainty created by the coronavirus, although they added that the decision could be reconsidered once the health crisis is over.

The German manufacturer had announced months ago its decision to establish a new factory in the province of Manisa, in western Turkey, with an estimated total investment of more than 1 billion euros; from 2022, the new factory would manufacture the Volkswagen Passat and the Superb, a model of its subsidiary brand Skoda. The plant would have an annual manufacturing capacity of 300,000 units.

On the other hand, the Turkish Competition Authority announced the same day the opening of an investigation against the Volkswagen Group and all its associated brands after the conclusions of a preliminary investigation, referring to complaints about the use of gasoline particulate filters, catalysts, and AdBlue deposits, among other elements.