Turkish automobile distributor Doğuş Otomotiv and Volkswagen are exploring opportunities to produce Volkswagen brand passenger cars in Türkiye. According to a Reuters report, which cites a statement from Doğuş Otomotiv, both companies have signed a letter of intent to this effect. The deal was announced on October 30 through Türkiye’s capital market platform KAP.
The possible collaboration aims to offer the Turkish market higher value products aligned with new technologies, as well as support the development of the national automotive industry. However, the companies have not yet provided specific details on vehicle models, investment volumes, production capacities or a possible timeline.
According Motor and Sports CarVolkswagen will be able to use vehicles originally developed for the Chinese market. Discussions reportedly include production using the CKD (Completely Knocked Down) method, where vehicle kits are imported from existing production sites and assembled at the destination.
The models considered, according to the report, include those from the FAW-Volkswagen joint venture in China, such as the Passat Magotan variant, as well as vehicles from the Jetta and Audi brands. Volkswagen confirmed to Turkish media that, together with Doğuş Otomotiv, it is examining the export of partially assembled vehicles from non-European production sites to Türkiye for the local market. It is not yet clear whether electric vehicles could be included in the future.
Volkswagen intends to use technologies developed in China globally
These considerations align with Volkswagen’s new strategy of implementing more and more vehicles and technologies developed in China in international markets. At the end of October, the group presented its direction at a technology event held in Hefei under the motto In China, Beyond China. This approach aims to position China not only as a supplier for the domestic market but also as a development and export center for other regions of the world.
Volkswagen already exports vehicles produced in China to regions such as the Middle East, Uzbekistan, Kazakhstan and parts of sub-Saharan Africa. By the end of 2026, additional markets are expected to be added, including Mexico, Egypt and Vietnam. In the long term, the company also plans to use Chinese vehicle platforms and electronic architectures for models outside of China. For example, the China Core Platform (CMP) and China Electronic Architecture (CEA) will serve as the technical basis for local model ranges in South America from 2030.
It is not yet clear whether the possible assembly in Türkiye could be part of this internationalization strategy. However, the final assembly of the imported vehicle kits would allow Volkswagen to take advantage of existing production structures outside of Türkiye.
Cost pressure forces Volkswagen to cut investments
The renewed production considerations come at a time when Volkswagen is tightening its investment restrictions. At the end of October, the group announced that it would temporarily suspend development work on the electric ID.Golf due to high cost pressure. Brand Group Core’s net cash flow had decreased from €4.34 billion to €1.43 billion in the first nine months of 2026.
Volkswagen therefore intends to increase its investment discipline and reduce development expenses. It is not yet known whether the considerations for vehicle assembly in Türkiye are related to these cost-saving measures.
Volkswagen abandoned Türkiye plant plans in 2020
For Volkswagen, Türkiye is not a potential new production site. In 2019, the Group planned to build a plant in Manisa, where models such as the VW Passat and Škoda Superb would be produced. The planned investment of around 1.3 billion euros aimed to create production capacities of up to 300,000 vehicles per year.
However, in 2020, Volkswagen abandoned the project, citing the COVID-19 pandemic and changing global economic conditions. Instead, the company invested more in existing European plants, including Slovakia.
Doğus Otomotiv has been a Volkswagen dealer partner in Türkiye for more than 30 years. Recently, the collaboration has expanded to additional markets, including Iraq, Azerbaijan and Syria. A final decision on the start of vehicle production in Türkiye has not yet been made. It also remains to be seen whether the possible assembly would exclusively serve the Turkish market or could open up additional sales markets in the future.
reuters.com, auto-motor-und-sport.de (DE)
