Volkswagen has announced the suspension of its plan to open a new factory in Turkey.
A statement by Volkswagen, on July 1, says the economic fallout from the COVID-19 pandemic was the reason for the decision.
Volkswagen says the pandemic has led to a sharp decline in the global automotive demand.
The company had said it would launch a factory in the Western Turkish province of Manisa. Volkswagen then set up a subsidiary in the country, but this expansion has now bee put on hold.
The Turkish subsidiary was entered into the commercial register in Manisa and has approximately $164 million in capital.
The project had been expected to bring 4,000 jobs to the region.
However, a company spokesman said that, in today’s context, creating new capacity was not necessary. All planned vehicle projects were now to be manufactured at production facilities within the existing Volkswagen network.
Earlier, Volkswagen Group was seeking to expand production capacity for the core brand’s Passat model and the Skoda subsidiary’s Superb model.
The Manisa plant had been intended to produce up to 300,000 cars a year.(dpa/NAN)