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According to foreign media reports, Volkswagen has set up a subsidiary in the Manisa region of western Turkey, and the new plant is in the final stage of negotiations and is about to make a final decision on the location of the production plant.

It is reported that 1.3 billion euros ($1.4 billion) will be invested in the project, of which the parent company Volkswagen has already paid 1/4, and the rest will be paid in the next two years.

Volkswagen's new company will focus on the design, production and assembly of cars, trucks and other vehicles, while Volkswagen has been considering building a new plant in Eastern Europe, including Bulgaria and Turkey.

Just last week, a member of Volkswagen's board of directors told reporters in Berlin that the company was about to finalize the new plant in Turkey. A spokesman for the company said on Wednesday that the new plant was still in the final stages of negotiations, but that they had not yet made a final decision on the location and details.

Previously, foreign media reported that Volkswagen's new plant in Turkey will undertake the production tasks of the new generation of Passat and Skoda Express. According to an internal document, the maximum annual production capacity of the new plant is about 300000 vehicles, of which 2/3 of the production capacity will be allocated to Passat and officially start production in 2022.

According to a senior Turkish official familiar with the situation, the plant will focus on exports and will create about 5000 jobs in and around the plant in the future.

Volkswagen chose to build a plant in Turkey because the country has more positive macroeconomic conditions, including a dividend of more than 80 million people, and can rival Germany in geographical locations such as logistics.

A Volkswagen spokesman declined to comment on the details of the plant but said the company was in the final stages of negotiations. In the future, the factory not only caters to the domestic market, but also is expected to become an export center in Eastern Europe.

Turkey has about 150 cars for every 1000 residents, and car ownership is low. And have a qualified labor force and a sound network of suppliers, which have become favorable conditions for Volkswagen to build a factory here. But more importantly, Turkey is also one of Passat's main markets, but its sales were in trouble after the sharp devaluation of the Turkish lira. Domestic car sales in Turkey nearly halved to 212605 in the first seven months of this year.

The new factory will bring the total number of Volkswagen factories worldwide to 123. According to foreign media reports, Volkswagen is also considering setting up factories in Bulgaria, Serbia, Romania and North Africa.

Other global carmakers with plants in Turkey include Fiat Chrysler, Renault, Ford, Toyota, Hyundai and Honda.

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