The Volkswagen Group is finalising a new production facility in Turkey which will reportedly become the site of Passat and Skoda Superb production next decade.
According to documents obtained by industry journal, Automotive News Europe, the new factory will have an annual production output of 300,000 units when it goes online in 2022, and be located in Manisa, some 40km north-east of Izmir on the Turkish west coast.
The publication reports the German automotive giant picked Turkey because of "positive macroeconomic conditions", along with its location amid growth markets.
No confirmation of these plans has been given by the company, though a Volkswagen spokesperson did tell Automotive News Europe the company is in the "final stages of negotiations".
The report claims two thirds of the 300,000-unit output will be reserved for the next-generation Passat mid-sizer, which is currently assembled in Embden, Germany. It's also said the facility will serve as an export hub for markets like Russia and the Middle East.
It's believed the Emben factory will be retooled for EV production, while Skoda is anticipated to shift production of its related Superb to the new Turkish factory, freeing up capacity at its Kvasiny plant in the Czech Republic.
Automotive News Europe cites 'experts' who say Volkswagen's move to produce vehicles in Turkey will prove a cost-effective way of servicing strong demand for the Passat in the region given slowing sales and currency fluctuations.
The plant will also form part of VW's newly established Turkish division, which is dubbed 'Volkswagen Turkey Otomotiv Sanayi ve Ticaret AS'. According to a notice published in Turkey's trade registry, Volkswagen Turkey will "design, manufacture and assembly motor vehicles".
Once production commences in 2022, the new facility will take the Volkswagen Group's portfolio of global manufacturing sites to 123.