Erdoğan was also at the signing ceremony: Automotive giant puts Turkey factory plan on hold

Chinese-based vehicle manufacturer BYD had signed an official agreement last year to build a factory in Manisa, Turkey, with an investment of approximately 1 billion dollars. However, the company's senior executive, Stella Li, announced that their priorities have shifted toward investment and production opportunities within the European Union.

In a statement made in London, BYD Executive Vice President Stella Li said, "Currently, our top priority as a company is our investments in the Hungarian market. Our second focus will be to find a suitable location for a second facility where we can produce across Europe." Li stated that no clear timeline has been set for the facility in Turkey and that the project has been put on hold indefinitely.

The agreement signed with the government in Turkey on July 8, 2024, included the establishment of a massive production facility with an annual production capacity of 150 thousand vehicles. However, no site preparation or construction activity has been initiated on the ground so far.

The signatures on the agreement were placed by AKP Chairman and President Recep Tayyip Erdoğan, Minister of Industry and Technology Mehmet Fatih Kacır, and BYD Chairman Wang Chuanfu at the Presidential Dolmabahçe Office.

The Ministry of Industry and Technology had announced the agreement in question on its official website with the headline "Investment decision in Turkey from a global giant."

The company aims to move its production facilities directly onto European soil due to the increased customs duties imposed by the European Union on Chinese-origin electric vehicles. In this context, it is planned that the assembly lines of BYD's factory in Szeged, Hungary, will be commissioned in the last quarter of this year.

Furthermore, the BYD management is not only looking to build factories from scratch but is also evaluating options to purchase idle European factories belonging to major automakers such as Stellantis and Volkswagen. Currently, the most notable options in these searches are existing facilities in Italy and France.

News Source: 12punto