At a final end, it appears that one of the largest investments announced in recent years in the Turkish car industry is being driven, with plans to create a new factory now on ice.
One of the most important investment projects to be implemented in Turkey, strengthening the country's ambitions to evolve into one of the world's strongest rising players, seems to lead to a final dead end.
The reason for its plan BYD on the construction of a vehicle factory in Turkey, an investment that had been presented with highly ambitious objectives and was accompanied by high expectations from both the Turkish government and the Chinese company.
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Unlike the footage originally announced, last-space movements showed that the project will not proceed as originally planned. Initially, Turkish reports began to mention serious difficulties in implementing the investment, and then the Stella Li, Executive Vice President of BYD confirmed that the project is essentially under suspension status.
Of course, this development is considered a very important blow to Turkey, as the investment plan provided funds of about $1 billion, an annual production capacity of 150,000 vehicles and the creation of around 5,000 jobs, In other words, figures that could significantly change the data on the country's local economy and car industry.
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In this light, it is no coincidence that Ankara attempted in the previous period to keep the plan alive,In view of the fact that the commitments signed by both parties remain valid.
For its part, however, BYD attributes the freezing of investment in licensing and approval issues related to the Chinese Government, resulting in the two sides being in a peculiar confrontation for months.
The climate has even increased, as Turkish circles have left open the possibility of taking measures against the Chinese company, ακόμη και μέσω εμπορικών περιορισμών ή δασμών.
In any event, and according to the latest information, BYD's position is to give priority to strengthening its production presence within the European Union, seeking to manufacture vehicles «Made in Europe» and limit its exposure to the European customs duties imposed on imported electric cars by the China.
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A key role in this effort to carry out is expected to have a construction of its new plant in Szeged, Hungary, which will be a key pillar of the company's European presence in the coming years.
In this context and despite its geographical proximity to Europe, Turkey cannot offer the same advantages as a member country of the European Union, which seems to be one of the main reasons why the Chinese group is reviewing its strategy and turning its attention to new locations within the single European market.
At present, there is no official announcement yet about the company's next step,However, international scenarios converge on the fact that BYD is seriously considering new investments in Southern Europe.
Thus, the Spain it appears as the prevailing scenario, as it has ready or under-functioning industrial facilities that could be used directly, and the Italy remains among the countries in the microscope of the Chinese company.
