Friday, November 22, 2019
Following the Turkish invasion of Syria, Volkswagen is delaying a decision on a new plant in Turkey. Nevertheless, people in Ankara still believe in a commitment. However, the EU Commission is now providing further reasons why VW should keep its hands off the billions invested.
Although Volkswagen has froze its investment plans in Turkey for the time being because of the Syria offensive, the billions project at the EU Commission is met with suspicion. Competition Commissioner Margrethe Vestager accuses Turkey of not having informed the EU about government subsidies promised to VW for the new plant. This emerges from a letter from Vestager, from which the newspapers quote the Funke Mediengruppe. The customs union with the EU obliges Turkey to disclose possible subsidies to VW, in Vestager's letter goes on to members of the European Parliament.
"Turkey has not informed the Commission that it intends to grant Volkswagen relevant funding," complained the Commissioner. According to the report, she announced an investigation. The Commission will try to clarify the situation by asking the Turkish authorities for information. Despite the Volkswagen announcement, the test was held to postpone a final decision on the construction of the new plant in Turkey. After the Turkish offensive in northern Syria, Volkswagen had backed down to avoid damage to its image. However, the construction of the work is not blown off yet. For example, entrepreneurs and government officials in Ankara continue to hope for a pledge from Wolfsburg.
Million Aid and Service Warranty
Turkey has pledged a state subsidy of 400 million euros to Turkey Report the spark newspapers continue. Apparently there is also a guarantee about the regular purchase of cars by the public sector. The investment sum for the plant, in which the Passat and the Skoda Superb are to be built for export to Eastern Europe, is around one billion euros. The settlement of Volkswagen would be very welcome in Turkey: Since the summer of 2018, the country is struggling with a severe economic crisis. Every seventh Turk is unemployed, more than one in four young people.
So that EU countries are not disadvantaged, who would also be pleased about a settlement of VW, the EU Commission looks at the possible conditions now especially critical. Earlier, MEPs from Germany had also protested against the high level of Turkish aid and suspected a violation of customs union rules. Turkey gains an unjustified competitive advantage over EU countries, quoted the spark newspapers including the head of the CDU / CSU group in the European Parliament, Daniel Caspary, the Green Party politicians Reinhard Bütikofer and Viola von Cramon and the FDP MEP Svenja Hahn.
The Green-EU deputies from Cramon demanded for the statement of the Competition Commissioner now a final stop the VW investment plans: Now was a "clear and public rejection" of VW to the plant in Turkey necessary, said Cramon the newspapers. It needs a binding decision in order not to damage the credibility of the largest car manufacturer in Germany. VW wants to finally decide by the end of the year where the new factory will be built.