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Volkswagen and its Turkish distribution partner, Doğuş Otomotiv, have signed a letter of intent to explore producing Volkswagen passenger cars in Türkiye. The companies have not announced models, investment, capacity or a schedule; reports say assembly of vehicles developed in China may be considered.
Volkswagen and Doğuş Otomotiv have signed a letter of intent to explore producing Volkswagen-branded passenger cars in Türkiye, reopening a possibility the German automaker abandoned in 2020. The announcement, disclosed on Türkiye’s capital markets platform on October 30, is an exploratory step: the companies have not specified vehicles, investment, capacity or a timeline, and no production decision has been made.
Reuters, citing a statement from Doğuş Otomotiv, reported the signing. The two companies say they are examining opportunities to offer the Turkish market higher-value products with new technologies and support the development of the domestic automotive industry. The letter of intent does not establish that a factory will be built or that assembly will begin.
Volkswagen confirmed to Turkish media that it and Doğuş Otomotiv are examining whether partially assembled vehicles from production sites outside Europe could be exported to Türkiye for the local market. Auto Motor und Sport reported that discussions may include CKD assembly: vehicle kits are shipped from an existing factory and assembled at their destination. It reported possible vehicles from Volkswagen’s Chinese joint-venture operations, including the Magotan, a Passat variant, as well as Jetta and Audi models. Those model possibilities have not been confirmed by Volkswagen.
The companies have not said whether any potential operation would use an existing site or require new facilities. The potential scale, jobs, local sourcing, export reach and the inclusion of electric vehicles are also unknown. Volkswagen has not said whether the talks are connected to its broader plans to export China-developed vehicles and technologies.
A Local Assembly Option for Volkswagen
If the discussions lead to production, Türkiye could gain local assembly of Volkswagen vehicles and potentially a closer link to the company’s China-based manufacturing network. For buyers, the announcement does not yet point to a specific model, price, launch date or change in availability. Those details depend on whether the companies reach a further agreement and on the choices they make about products and production.
The reported CKD approach would differ from building a full manufacturing operation from the ground up. It could allow Volkswagen to use existing production facilities outside Türkiye while completing final assembly locally. That is a reported possibility, not a confirmed plan, and the companies have not set out its expected costs or local content. The proposal’s implications for Turkish suppliers and employment cannot yet be assessed.
The timing also coincides with Volkswagen’s tighter focus on spending. The Group said at the end of October that it would temporarily suspend development work on the electric ID.Golf because of cost pressures. Brand Group Core net cash flow fell to €1.43 billion in the first nine months of 2026, from €4.34 billion in the same period a year earlier. The available information does not establish that the Türkiye discussions are part of those cost measures.
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Türkiye’s Earlier Volkswagen Plant Plan
Volkswagen considered Türkiye as a manufacturing location before. In 2019, it planned a plant in Manisa with an announced investment of about €1.3 billion and intended capacity of up to 300,000 vehicles a year. The proposed site was expected to make models including the Volkswagen Passat and Škoda Superb. Volkswagen dropped that project in 2020, citing the COVID-19 pandemic and changing global economic conditions, and continued investing in existing European facilities, including in Slovakia.
The current discussions are not the same as a confirmed revival of the Manisa factory plan. The new letter of intent refers to exploring production with Doğuş Otomotiv, Volkswagen’s Turkish distribution partner for more than 30 years. The partnership has also expanded into markets including Iraq, Azerbaijan and Syria, but no source material establishes that any future Turkish assembly would serve those countries.
The talks also fit a wider Volkswagen strategy to use China as more than a sales market. At a technology event in Hefei in late October, the Group described its approach as “In China, Beyond China”, seeking to develop and export vehicles and technologies from China to other regions. Volkswagen already exports China-made vehicles to markets including the Middle East, Uzbekistan, Kazakhstan and parts of Sub-Saharan Africa. Türkiye’s place in that strategy, if any, has not been confirmed.
“The company is examining, together with Doğuş Otomotiv, the possibility of exporting partially assembled vehicles from production sites outside Europe to Türkiye for the local market.”
— Volkswagen, in comments to Turkish media
Key Production Details Remain Open
The letter of intent is not a final investment or production agreement. Volkswagen and Doğuş Otomotiv have not disclosed models, investment, capacity, location or timing. They have not said whether the talks concern CKD assembly, another production arrangement, or both. Reports naming Magotan, Jetta and Audi vehicles remain unconfirmed possibilities.
It is also unclear whether electric vehicles would be included, whether the operation would create new facilities or use existing ones, and whether any vehicles would be sold only in Türkiye or exported. The companies have not described the expected role of Turkish suppliers, nor said whether the discussions are linked to Volkswagen’s spending constraints or China export strategy.
From Letter of Intent to Decision
The next concrete development would be a further announcement from Volkswagen or Doğuş Otomotiv setting out whether they have agreed to proceed and, if so, under what terms. Readers should look for confirmation of the production method, candidate models, location, investment, planned capacity and schedule. Until the companies provide those details, the proposal remains under examination rather than a committed production program.
Any later decision would also clarify whether the project is limited to the Turkish market or could support exports, and whether it includes vehicles developed in China. No date has been given for a decision or for the next update.
Key Questions
Have Volkswagen and Doğuş Otomotiv decided to build cars in Türkiye?
No. They signed a letter of intent to explore potential passenger-car production. The companies have not announced a final decision or a production agreement.
Which Volkswagen models could be assembled?
Auto Motor und Sport reported that discussions may include the China-market Magotan, Jetta and Audi models. Volkswagen has not confirmed those vehicles as candidates.
What does CKD assembly mean in this discussion?
Completely Knocked Down (CKD) assembly means shipping vehicle kits from an existing production site and assembling them at the destination. Reports say this method may be under discussion; the companies have not confirmed that it will be used.
When could production begin?
No timeline has been announced. Volkswagen and Doğuş Otomotiv have not provided a start date, production capacity or investment figure for the current proposal.
Is this the same project Volkswagen planned in 2019?
No such connection has been announced. Volkswagen abandoned its planned Manisa plant in 2020. The current letter of intent is a new exploration with Doğuş Otomotiv, and the companies have not said it revives that factory plan.
Source: electrive.com
