Volkswagen is not scouting for alternative locations as it evaluates plans to build a new car factory in Turkey, Andreas Tostmann, VW’s production chief, has told media.
“We are watching developments. Plans for Turkey are currently on hold. We are not actively looking at alternative locations,” Tostmann said.
Go deeper with GlobalData
The Putin-Erdogan agreement on 23 October decreases the chances for VW to relocate its planned plant out of Turkey, romania-insider.com said.
Nonetheless, Romania made the best offer to VW for hosting the planned new car plant, Paula Pirvanescu, a state secretary in the ministry of business environment (MMACA), said at the Auto Industry Forum 2019 in Bucharest, adding that “the final decisions are made at a higher level” – not involving the ministry or the investment agency.
Romania is one of the best EU countries for companies to relocate their businesses and a hub for the automotive industry with Renault and Ford operating “nearly very well” despite problematic infrastructure, Pirvanescu argued.
The race for hosting VW’s new plant resumed with Romania, Bulgaria, Serbia and Croatia all renewing their interest or even contacting the German automaker after it announced it put on hold the investment in Turkey (the initial choice) amid political and military developments.
Volkswagen, however, stressed it was not actively scouting for new locations.
