German automaker Volkswagen drops plans for new plant in Turkey: Reports

German automaker Volkswagen is dropping its plans for a new factory in Turkey in response to a drop in demand for new cars during the coronavirus pandemic, according to a media report on Wednesday.

Germany’s dpa news agency cited a company statement making the announcement, but Volkswagen did not immediately respond to a request for comment.

The automaker, Germany’s largest, had been planning to open the factory in Manisa on the western coast of Turkey.

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The 1.3 billion euro ($1.4 billion) facility was to build the Volkswagen brand Passat and the Superb, a sedan from its subsidiary Skoda, starting in 2022 with an annual capacity of 300,000 units.

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The plans had met with opposition from German labor unions and Volkswagen then faced more criticism after Turkey invaded Syria, and the project had been on hold since last year.