Volkswagen is considering vehicle production in Turkey
Volkswagen is considering manufacturing cars in Turkey again. To this end, the company has signed a letter of intent with its long-term distributor Doğuş Otomotiv. The assembly of vehicles developed in China is also reportedly under discussion.
Volkswagen is thinking of assembling Chinese models in Turkey in the future as well.
Image: VW
Turkish automobile distributor Dogus Otomotiv and Volkswagen are exploring options for manufacturing Volkswagen-brand cars in Turkey. According to Reuters, citing a statement from Doğuş Otomotiv, the two companies have signed a letter of intent for this purpose. The agreement was announced on October 30 through Turkey’s capital market platform KAP.
The goal of this potential collaboration is to offer the Turkish market higher-quality products based on new technologies and to support the development of the local automobile industry. So far, the companies have not provided specific details regarding vehicle models, investment amounts, production capacity, or a possible timeline.
According to auto motor und sport, Volkswagen may rely on vehicles originally developed for the Chinese market. Production via the CKD (Completely Knocked Down) method is reportedly under discussion, where vehicle kits are imported from existing manufacturing sites and assembled only at the destination location.
Models from the Chinese joint venture FAW-Volkswagen, including the Magotan version of the Passat available there, as well as vehicles from the Jetta and Audi brands, are said to be under consideration. Volkswagen confirmed to the Turkish online portal Automobil Produktion that it is exploring with Dogus Otomotiv the possibility of exporting partially assembled vehicles from non-European manufacturing sites to Turkey for the local market. It is not yet known whether electric vehicles could be included in this future plan.
Volkswagen Will Leverage China’s Developments Globally
This approach aligns with Volkswagen’s new strategy of increasingly using vehicles and technologies developed in China in international markets. At the end of October, the company presented its strategy under the theme “In China, Beyond China” at a technology event in Hefei. The goal is for China to serve not only the domestic market going forward but also act as a development and export hub for other regions around the world.
Volkswagen already exports vehicles produced in China to places such as the Middle East, Uzbekistan, Kazakhstan, and parts of Sub-Saharan Africa. By the end of 2026, additional markets like Mexico, Egypt, and Vietnam are set to be added. In the long term, there are plans to use Chinese vehicle platforms and electronic architectures for models outside China as well. The China Main Platform (CMP) and China Electronic Architecture (CEA) are intended to serve as the technical foundation for local model lines in South America starting in 2030.
It remains unclear whether potential assembly in Turkey could become part of this internationalization strategy. However, final assembly of imported vehicle kits would allow Volkswagen to utilize existing production structures outside Turkey.
Cost pressures force Volkswagen to cut costs
The renewed production plans come at a time when Volkswagen is tightening its investment limits. As recently as the end of October, the company announced it would temporarily suspend development efforts for the electric ID.Golf due to high cost pressures. The net cash flow of the Brand Group Core dropped from 4.34 billion euros to 1.43 billion euros in the first nine months of 2026.
Therefore, Volkswagen aims to strengthen its investment discipline and cut development expenses. It is not clear whether the plans to assemble vehicles in Turkey are related to these cost-saving measures.
Volkswagen abandoned its Turkish plant in 2020
For Volkswagen, Turkey is not an unfamiliar location as a potential production site. As early as 2019, the company planned to build a factory in Manisa, where models such as the VW Passat and Skoda Superb were intended to be manufactured. The planned investment of around 1.3 billion euros was meant to create production capacity for up to 300,000 vehicles per year.
However, in 2020, Volkswagen abandoned this plan. The company cited the COVID-19 pandemic and changing global economic conditions as reasons. Instead, Volkswagen invested more in existing European sites, including Slovakia.
Dogus Otomotiv has been Volkswagen’s distributor in Turkey for over 30 years. Recently, the partnership has been expanded to additional markets, including Iraq, Azerbaijan, and Syria. A final decision on establishing vehicle production in Turkey has not yet been made. It remains unclear whether the potential assembly would serve only the Turkish market or could eventually open up further sales markets.