VW in final talks about new plant in Turkey -board member (updated)

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26/09/2019 11:19

(Adds detail)
    BERLIN, Sept 26 (Reuters) - German carmaker Volkswagen
 VOWG_p.DE  is nearing a decision on building a new plant in
Turkey, a board member told reporters in Berlin on Thursday.
    "We are in final talks with Turkey," said Andreas Tostmann,
board member in charge of production, adding he expected the
talks to be completed in two weeks, "perhaps earlier."
    Giving more details on the plans, sources close to the
company said the multi-brand factory would cost more than 1
billion euros ($1.09 billion). 
    The sources said the plant would likely produce 300,000 cars
a year, the VW Passat and near identical Skoda Superb models,
for export to eastern Europe.
    It would employ near 4,000 in Manisa near Izmir in western
Anatolia and construction could start at the end of 2020 with
production starting in 2022, they said.
    Volkswagen had been looking into a possible new plant in
eastern Europe, with Bulgaria known to have been on the list.
    A deal in Turkey could be politically controversial given
European Union concerns regarding what it sees as constraints on
freedom of expression and demonstration rights under President
Tayyip Erdogan. VW's argument is that Turkey is a candidate for
EU membership.
    ($1 = 0.9148 euros)

 (Reporting by Jan Schwartz and Klaus Lauer, writing by Vera
Eckert, editing by Jason Neely)
 ((vera.eckert@thomsonreuters.com; +49 69 7565 1228; Reuters
Messaging: vera.eckert.thomsonreuters.com@reuters.net))