Turkey confirmed on Wednesday, March 26, that Chery Automobile’s partners will invest US$1 billion in a new manufacturing facility in the country. The plant is expected to have the capacity to produce 200,000 vehicles annually.
Chery, one of China’s largest automakers, quickly issued a statement rejecting the claim, stating it had no plans to build a factory in Turkey.
However, a spokesperson from Turkey’s Ministry of Industry confirmed to Reuters that it is actually Chery’s partners who are making the investment.
The confusion started after a video from President Tayyip Erdogan’s office showed him presenting a certificate of appreciation to Chery officials, including Guibing Zhang, the president of Chery International, for their investment. The video was taken at a ceremony held at the presidential palace.
The presidency had earlier stated that Chery’s partners would be investing in a facility located in Samsun, a province on Turkey’s Black Sea coast.
Chery, in its response, said, “The report by the foreign news wire is untrue. Chery has no plan to build a factory in Turkey. We are seeking partnerships with a third party to expand the business in Turkey.”
Bloomberg had previously reported on the planned investment, detailing the project.
A Turkish industry ministry official clarified that the investment was part of 19 new projects announced by President Erdogan, which includes the facility in Samsun. The official confirmed that the production plant would focus on electric and hybrid vehicles and their parts, with a potential investment of up to US$1 billion. The project is expected to create 5,000 jobs.
The factory in Samsun would make Chery the second Chinese car brand to be produced in Turkey. Last year, BYD agreed to build a US$1 billion production plant in the western Turkish province of Manisa, with a planned capacity of 150,000 vehicles per year.
The Turkish presidency previously stated that the new Samsun facility would produce next-generation electric vehicles and their components.
Discussions between Turkey and Chery about the investment have been ongoing since last year. President Erdogan met with Zhang during an investment event in Istanbul last September.
