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VW will decide on $1.4B Turkish plant in Feb.

Volkswagen Group is not considering other locations for a new multibrand plant besides Turkey, sources said. A decision to build the plant in Turkey is still on hold and will not be made until February, sources familiar with the matter told Automobilwoche.

Other locations outside of Turkey are not being considered, the sources said.

VW had picked Manisa, 40 km (25 miles) northeast of Izmir on Turkey’s western coast, for the plant. It was scheduled to build the next-generation Passat its sister model, the Skoda Superb, starting in 2022, with a maximum annual production capacity of 300,000 vehicles.

Bulgaria, Romania and Serbia were hoping that VW Group would return to an initial shortlist of sites for the 1.3 billion-euro ($1.4 billion) plant after the VW board postponed the Turkish investment amid international criticism of the Turkey’s military operations in Syria.

VW does not expect capacity problems due to the delayed decision. “We have enough leeway in the production network,” a VW spokesman said.

If the Turkish plant is canceled, VW could decide to build the Passat in its factory in Bratislava, Slovakia, after the current Passat production factory in Emden, Germany, switches to building full-electric cars in 2022, Automobilwoche sources said in October.

17.December 2019