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New Turkish electric car project investment seen at $3.7 billion

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Via Yahoo Finance

ISTANBUL (Reuters) – Turkey’s new domestic electric car project will have a fixed investment of 22 billion lira (2.85 billion pounds) over a period of 13 years, with an annual production capacity of 175,000 vehicles, the Official Gazette said on Friday.

The project, launched on Oct. 30, will receive state support, including tax breaks, and establish a production facility in the northwestern province of Bursa, according to a presidential decision published by the gazette.

Five models of the car will be produced by a workforce of more than 4,000 people, the statement said.

Turkey is a large exporter of vehicles to Europe, but the cars are made by global autos firms, usually in joint ventures with local partners.

President Tayyip Erdogan unveiled plans in November 2017 https://fr.reuters.com/article/bankingfinancial-SP/idUKL8N1N851Z to launch a car made entirely in Turkey by 2021. At the time he said a consortium of five firms – including mobile phone operator Turkcell <TCELL.IS> and the parent of TV maker Vestel <VESTL.IS> – had been selected to produce the car.

He had said the prototype would be completed by 2019 at the latest. For years Erdogan’s AK Party has held a goal of bringing about the production of a home-grown car, seeing it as proof of the country’s growing economic might.

Erdogan was set to unveil the new car at a ceremony on Friday.

(Reporting by Ebru Tuncay; Writing by Daren Butler; Editing by Aditya Soni)

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