German carmaker giant Volkswagen has given up on plans to build a multi-billion production plant in Turkey, a well-informed journalist announced on Twitter on July 5.
“I learnt that Volkswagen will not go ahead with the investment,” said Emre Ozpeynirci, who widely reports on the local automotive industry in high-circulation Hurriyet newspaper.
According to Ozpeynirci, Volkswagen put forward a number of ‘heavy’ demands to undertake the investment, which President Recep Tayyip Erdogan found “unacceptable.”
He did not say what those unacceptable demands were.
Ozpeynirci wrote in Hurriyet at the end of June that the German carmaker was going to announce a major investment in Turkey within two weeks.
According to Ozpeynirci’s initial report, Volkswagen planned to invest as much as €2bn in the plant in Manisa, which will manufacture the Seat Ateca and Skoda Karoq models of the VW group’s subsidiaries.
The June report also suggested that VW’s CEO travelled to Ankara to discuss the investment with top Turkish officials.