Volkswagen is once again circling Türkiye as a production location. The German automaker is exploring passenger car production in the country together with Turkish partner Doğuş Otomotiv, with a Volkswagen spokeswoman telling the German trade publication Automobil Produktion that the companies are examining the possibility. One point, however, is beyond doubt: no final investment decision, location, capacity or timetable has been announced. Reports indicate the talks cover the assembly of light vehicles.
It is not the first time Volkswagen has looked toward Türkiye. Back in 2019, the company pursued a production plan for the country valued at approximately €1.3 billion, but the project was permanently shelved in 2020 because of the pandemic and changing market conditions. That the idea is back on the table signals how sharply the economics of European carmaking have shifted since.
The backdrop could hardly be more turbulent. Germany's auto sector is facing what CNBC this week called an "industry crisis," and Schaeffler, a Volkswagen supplier and maker of ball bearings and hybrid-electric drivetrains, said on Tuesday that it will eliminate 3,460 jobs in Europe, some three quarters of them in Germany, and close German sites on weak demand. The supplier is also eyeing defense as a future field of business.
