Volkswagen Stalls Plans for New Car Plant in Turkey
October 15 2019 - 5:34AM
Dow Jones News
By William Boston
BERLIN--German automotive giant Volkswagen AG (VOW.XE) said
Tuesday that its executive board has delayed final approval for
building a new car plant in Turkey in light of the country's
incursion into northern Syria.
Volkswagen, which is planning to build a facility in Turkey with
the capacity to assemble around 300,000 cars a year, is the first
big German company to reconsider an investment in Turkey in the
wake of the Ankara's controversial move into northern Syria and its
attack on Kurdish forces in the wake of the U.S. decision to
withdraw from the region.
"The board of management has delayed the decision the new plant.
We are monitoring the current situation closely and are concerned
about current developments," the company said in a statement.
Over the past two decades Turkey has become a key manufacturing
location for the global auto industry. Major auto makers including
Toyota Motor Corp. (7203.TO), Fiat Chrysler Automobiles NV
(FCA.MI), Ford Motor Co. (F), and Renault SA (RNO.FR), build cars
and trucks in Turkey.
The European Union has called on Turkey to halt its incursion
into Syria. Germany, a big trading partner with Turkey, has
suspended all deliveries of weapons to the country's armed
forces.
Write to William Boston at william.boston@wsj.com
(END) Dow Jones Newswires
October 15, 2019 05:19 ET (09:19 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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