BLOOMBERG/ALEX KRAUS
Volkswagen (VW) has delayed a decision on a EUR 1.3 billion ($1.4 billion) auto factory in Turkey after the country’s military action in northern Syria prompted an international outcry, reported Bloomberg.
The plant postponement may come as a blow to President Recep Tayyip Erdogan and to Turkey, which counts Germany as its largest trading partner.
VW said that it is monitoring the situation and the car conglomerate is concerned about the current developments, adding that the decision to delay was made by the management board.
The plan to make 300,000 cars in Turkey, creating 5,000 jobs, would expand VW’s total number of factories worldwide to 123 and create a bridgehead to grow sales across Eastern Europe and the Middle East.
The world’s biggest carmaker has struggled to compete with Asian rivals in those markets because of high costs at its factories in Western Europe. VW also considered sites in Bulgaria, Serbia, Romania and North Africa.
Industrial giants Daimler, Siemens as well as Continental and Robert Bosch GmbH operate plants in Turkey, alongside other global manufacturers including Ford Motor and Toyota Motor.
MOST READ
INVESTMENT
India seizes Yes Bank, limits withdrawalsINVESTMENT
ING Groep plans to sell its Turkish unitINVESTMENT
SABB seeks to boost corporate lendingINVESTMENT
UBS launches new private client programINVESTMENT
Egypt plans to resume IPOs of parastatalsINVESTMENT
HSBC considering exiting from TurkeyINVESTMENT
Abu Dhabi’s Group 42 acquires BayanatINVESTMENT
Amanat considers stake in VPS HealthcareINVESTMENT
Goldman Sachs 1MDB case moved to higher courtINVESTMENT
Mashreq, Zoho partner to enhance SME bankingINVESTMENT
AA- ratings affirmed for ECI, stable outlookINVESTMENT
KIZAD, ECI partner to support UAE businessesINVESTMENT
Fiat Chrysler, PSA explore a potential mergerINVESTMENT
UBS investment bank job cuts reach Europe
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
