Volkswagen may produce vehicles in Turkey
Volkswagen, the world’s fifth-largest automotive producer, may invest more than 1 billion euros within the next few years to start production in Turkey, said the chairman of Doğuş Otomotiv, VW’s distributor in Turkey.
Volkswagen will come to Turkey sooner or later, said Aclan Acar, who met with various newspapers’ economy desk chiefs last Friday just before the opening of the Doğuş Meiller Damper Factory. Doğuş Holding Chairman Ferit Şahenk was also present at the event to comment further on the group’s investment plans.
“Volkswagen is monitoring us closely. We believe the firm will eventually invest in Turkey. We envisage that instead of completely shutting down a factory and opening one here in Turkey, it would simply move a production line to the country. As Doğuş Automotive, we will continue to invite them.”
The production facility of Volkswagen focusing on commercial vehicles may be built around the northwestern city of Adapazarı within three to four years, noted Acar. “If implemented, the investment could not be less than 1 billion euros.” VW AG has factories in Brazil, India, China and Russia, Acar said, adding that Turkey is no longer a country that looms large solely because of its cheap labor force.
The announcement puts an end to the curiosity voiced by Industry and Trade Minister Zafer Çağlayan almost six years ago, when he had said that there were noteworthy efforts to start production of two large automotive brands in Turkey. He had mentioned Magna’s $400 million investments as well as a 1-billion euro investment from another firm, without revealing its name.
Doğuş opens production base
Meanwhile, Doğuş Automotive opened its first production base in Sakarya in partnership with damper producer Meiller, with which it signed a production agreement in 2007. Çağlayan also attended the opening ceremony for the Meiller Doğuş Damper Factory, worth 10 million euros
The factory is expected to collect accrue 16 million euros in turnover by the end of the year. It is aimed that the factory, referred to as “the city’s production center,” will reach a turnover of 180 million euros and exports worth 57 million euros in five years.
Speaking at the opening ceremony of the factory, Şahenk said 60-70 percent of the damper production will be exported. Following the operational activities concerning VW commercial vehicle sales in Egypt, the preparations for a Porsche dealership in Switzerland’s Lausanne are complete, he also revealed.
“Our goal is to turn Sakarya into a forerunner base of first class damper, semi-trailer production and recycling management in Turkey and the neighboring damper markets,” said F.X Meiller GmbH Chief Executive Producer Frank Hiller.
Doğuş is able to draw foreign investment to Turkey via its producer identity, said Acar. “The second step concerning our goals is the 35-million euros investment in İzmir’s Tire region with the world’s leading trailer firm Krone. We plan to export 80 percent of the trailer production starting in 2009.”
source: Turkish Daily News
Tags: Volkswagen Turkey