Volkswagen cancels plan to build factory in Turkey

At issue is the drop in car sales. This unit was expected to manufacture around 300 cars a year and be a basis for the company's expansion in the Middle East.

Volkswagen canceled plans to build a factory in Turkey due to the sharp drop in car sales on record since the new coronavirus hit the global economy. The car market has not been indifferent to this impact, as has been reported, and particularly the German company is not.

In a statement sent this Wednesday and released by “Bloomberg”, Volkswagen explains that the reduction in the demand for vehicles has made the greater production capacity“ unnecessary from the current perspective ”. In other words, the multinational explained that, instead of investing in more space, it will produce new cars in the factories it already has at the moment.

The world's largest carmaker had already suspended the project last year, when political tensions in the region increased after US troops withdrew from Syria, but the Covid-19 disease created further obstacles to this infrastructure investment.

According to the financial agency, the factory in Turkey was expected to manufacture around 300 units per year and be a basis for Volkswagen's expansion in the Middle East - that is, a strategic point of the brand for that region.


Coca-Cola registers losses of 48% in the Iberian market in the second quarter

The beverage company had a revenue of 338 million euros in its Iberian division that includes the territories of Spain, Portugal and Andorra. Revenues were 917 million, 28,5% less than in the first half of last year.

Port of Leixões invests 13,5 million euros in tugs with 70 tons of traction force

These new tugs will replace two others over 40 years old and are in line with the decarbonisation strategy that the port administration has been developing in the ports under its jurisdiction.

Watch JE editors Talks: Destino Leiria now

A conversation about the future of the Leiria region and the challenges it faces in terms of attracting and retaining talent and the recovery of the industrial sector, as well as the region's digital transition.