Volkswagen liquidates Turkey unit after decision to build Slovakia plant
Volkswagen Group has liquidated its unit in Turkey after cancelling plans to establish its first factory in the country, Turkish television channel BloombergHT reported on Tuesday.
The decision to shutter the firm was registered with the Turkish Trade Registry and a call to creditors was issued on Monday, BloombergHT said.
Volkswagen established the unit in the northwestern industrial region on Manisa in October 2019 with capital of 943.5 million liras ($127 million). It then suspended its production plans due to a Turkish invasion of northern Syria that began the same month. In July, it abandoned the project entirely citing the economic impact of the coronavirus pandemic.
The liquidation of the unit follows an announcement by Volkswagen last month that it would invest 1 billion euros in a plant in Slovakia.
The investment would have been the first by a German carmaker in Turkey, though Mercedes has a production facility for buses in Istanbul. Fiat, Renault, Hyundai and Honda are among foreign firms producing motor vehicles in the country.