VW’s Labor Unions Determined To Block Decision On New Plant In Turkey

Volkswagen’s powerful labor unions are determined to block the company’s plans of building their new $1.4 billion factory in Turkey until the country puts a stop to its offensive in northern Syria.

“I want to say very clearly: the labor representatives repudiate approval as long as Turkey tries to reach its political goals with war and force,” VW’s global works council chief and supervisory board member Bernd Osterloh in a staff newspaper seen by Bloomberg.

Earlier this month, the VW Group decided to put on hold the final decision on the Turkish factory, following criticism of the country’s military operations in Syria. Frank Witter, VW’s CFO, told reporters this week that the company is concerned about the political situation and is monitoring developments.

Related: Greece Wants VW’s New Factory Too, After Turkey, Bulgaria, Romania And Serbia

In addition, there’s no immediate time pressure for the German car maker to seek alternatives and capacity can be added at existing factories in Slovakia and elsewhere, Witter added.

Ever since news broke that VW is postponing the project in Turkey, countries like Bulgaria, Romania, Serbia and, more recently, Greece have expressed their interest to host the new $1.4 billion factory.

VW’s new plant is planned to produce the next-generation Passat and Skoda Superb, with an annual capacity of 300,000 vehicles. The original plan was to have the facility up and running by 2022.

Labor representatives have great power in decision-making at VW, accounting for half the seats on the supervisory board and having far-reaching veto rights. The board is scheduled to meet on November 15 for the annual review of the company’s 5-year spending plans, including capital allocation for its factories worldwide.

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  • Six_Tymes

    if they build there, i wont be buying vw’s. you can speculate as to why.

    • Matt

      How many VW’s have you owned or were considering owning?

      • Belthronding

        Ding ding

  • db

    Not that I know a whole lot about it but it gets a little disturbing when a labor unions, supposedly workers who band together to strive for higher remuneration and improved working conditions starts dictating future company strategies.
    Remembering most of these union reps are just “guys” off the floor.

    • Julien Lachemoi

      I think it shows people are trying to make a change in the world with the power they have.

      • HD

        Respect to them, and shame on the president of the USA for accepting the massacre of the very people who defended the world from the cancerous ISIS to spread. Unbelievable how this can be happening.

        • Did you think this way when the USA attacked Iraq and made a big mess there because of that invasion, ISIS came alive? Then the whole world worked very hard to create unrest in Syria so ISIS can flourish.

      • db

        I get that but the point I was trying to make is do we trust union leaders to make international calls like this? What education or knowledge do they have? Are we sure there isn’t an agenda behind their motives? Perhaps they may be affiliated to one of the parties involved?

        I mean isn’t that what politicians are for? At least they are elected into office. Most union leaders belong in the “old boy’s club” and get “promoted” on the buddy-buddy system.

        • Julien Lachemoi

          I do understand your concerns and I share them. But to be honest I’m starting to trust politicians so little that I would be willing to follow some Unions if what they fight for makes sense.

  • mist

    Great news

  • roombay42

    With many car factories in Europe running under capacity, why is there a need to build more?

    • Jarosław Kotowicz

      The key word – wages

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