Volkswagen Delays Final Approval for Turkey Plant Following Syria Incursion
October 15 2019 - 6:05AM
Dow Jones News
By William Boston
BERLIN -- Automotive giant Volkswagen AG has delayed final
approval for building a new car plant in Turkey, becoming the first
major international company to reconsider an investment in the
country following its incursion in northern Syria.
The postponement by Volkswagen, which is planning to build a
facility in Turkey with the capacity to assemble around 300,000
cars a year, comes in the wake of Ankara's controversial move into
northern Syria to seize territory held by Kurdish forces after the
U.S. withdrew troops.
"The board of management has delayed the decision to build the
new plant. We are monitoring the current situation closely and are
concerned about current developments," Volkswagen said Tuesday.
Over the past two decades, Turkey has become a key manufacturing
location for the global auto industry. Major auto makers that build
cars and trucks in the country include Toyota Motor Corp., Fiat
Chrysler Automobiles NV, Ford Motor Co., and Renault SA.
The European Union has called on Turkey to halt its incursion.
Germany, a big trading partner with Turkey, has suspended all
deliveries of weapons to the country's armed forces.
President Trump has authorized sanctions and raised steel
tariffs on Turkey, and threatened further financial penalties if
Ankara continues its offensive.
Write to William Boston at william.boston@wsj.com
(END) Dow Jones Newswires
October 15, 2019 05:50 ET (09:50 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Volkswagen (TG:VOW3)
Historical Stock Chart
From Aug 2024 to Sep 2024
Volkswagen (TG:VOW3)
Historical Stock Chart
From Sep 2023 to Sep 2024