Volkswagen postpones final decision on Turkey plant (updated)

Dogus Otomotiv Servis ve Ticaret

15/10/2019 11:27

(Amends media identifying tag, adds statement from VW
supervisory board member)
    FRANKFURT/HANOVER, Oct 15 (Reuters) - Volkswagen  VOWG_p.DE 
has postponed the final decision whether to build a car plant in
Turkey, the company said, amid international criticism of the
country's military operation in Syria and concerns about
potential reputational fallout.
    "We are carefully monitoring the current situation and look
with concern at current developments," a company spokesman said
on Tuesday.
    Earlier this month, Volkswagen established a subsidiary in
Turkey's western Manisa province, while the company said that it
was still in the final stages of negotiation and that it had not
made a final decision on the factory.  urn:newsml:reuters.com:*:nL5N26N2DK
    Volkswagen supervisory board member Stephan Weil, prime
minister in Lower Saxony where the carmaker is based, said that
he could not imagine that Volkswagen will make an investment
given the current circumstances.
    Lower Saxony is an influential voice at the carmaker with a
20% shareholding.
    "I have the impression that my view is shared by several
other people in the supervisory board," Weil said, adding that
topic would to be discussed at the next meeting of the
supervisory board in mid-November.
    "I very much hope that we will get back to a situation where
the Turkish President realises that he has embarked on a very
dangerous path, and the direction must be changed urgently," he
said.
    German Chancellor Angela Merkel said on Sunday that she told
Turkish president Tayyip Erdogan that the offensive must be
stopped because it risked creating a humanitarian crisis.
    European Union countries agreed on Monday to limit arms
exports to Turkey, while U.S. President Donald Trump imposed
sanctions on Turkey.  urn:newsml:reuters.com:*:nL5N26Z57N

 (Reporting by Arno Schuetze and Peter Mlodoch; editing by
Thomas Seythal and Louise Heavens)
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))