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Volkswagen postpones Turkey investment plan

Volkswagen AG has delayed plans to build a car plant in Turkey due to the country's military operations in northern Syria, a company spokesperson confirmed to S&P Global Market Intelligence on Oct. 15.

The Volkswagen spokesman was responding to a report by Reuters, which cited German-language newspaper Handelsblatt. The report said the German carmaker postponed the plan as Turkey faces international criticism over its military activity in northern Syria.

"We are observing the situation with great concern," a spokesman for the German carmaker reportedly told the German paper.

The report comes about two weeks after Bloomberg News reported that Volkswagen formed a Turkish subsidiary that will oversee the production of about 300,000 vehicles a year.

Czech Prime Minister Andrej Babis in September said at a press conference after a meeting with Turkish President Recep Tayyip Erdogan that Volkswagen was looking to make a "big investment" in Turkey.