INTERNATIONAL - Turkey is increasingly confident German carmaker Volkswagen will build a production plant in the country after an “extremely positive” meeting between a senior company official and President Tayyip Erdogan this week, three Turkish sources said.
Reuters reported last week that the two sides had been holding talks over Turkey’s vehicle tax regime to conclude the 1 billion euro ($1.1 billion) investment.
The carmaker, which has also considered making the investment in Bulgaria, has not announced a final decision, but sources have said Volkswagen is positive about investing in Turkey.
Erdogan and a high-ranking VW official overcame most of the problems during a meeting this week, one Turkish source with knowledge of the matter said. A Volkswagen source said Erdogan had met with VW Chief Executive Herbert Diess this week.
“There were previously some small issues, such as the tax arrangements on the cars that will be sold. In the meeting, an almost complete agreement was reached,” the Turkish source said. “If there isn’t a last minute problem, the investment will be made in Turkey.”