German car manufacturer Volkswagen is continuing to shut down its facilities in Turkey, infuriating the government and of course President Erdogan…
Within two years, Erdogan managed with his policies to completely turn the business climate in his country, driving away large, even agreed on investments, despite a series of huge incentives he offered them.
Only two years ago Volkswagen had agreed with the Turkish President to invest millions, wanting to build a large production unit outside Ankara.
Erdogan was so elated at the prospect he even mandated that the entire Turkish state and officials buy ONLY Volkswagen cars.
But the Turkish government’s egregious policies and provocations in the Eastern Mediterranean have resulted in large multinational companies turning their backs on his country, by either freezing their investments in Turkey or even pulling out altogether.
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German giant Volkswagen not only cancelled the investment it had agreed on but also closed its subsidiaries in Turkey.
The car manufacturer shut down the “Volkswagen Turkey Industrial and Trade Societe Anonyme” in the city of Manisa in western Turkey. In particular, it decided to dissolve the company it had founded in October 2019 with a capital of 943.5 million Turkish liras.
According to local media, other German subsidiaries will be following the same path.
The Turkish government’s annoyance with these negative developments is so high that the country’s Industry Minister Mustafa Varank saw “political motives” behind VW’s decisions outrightly blaming German Chancellor Angela Merkel…