UPDATE - German giant Volkswagen establishes firm in Turkey

UPDATE WITH MORE DETAILS

By Gokhan Ergocun

ISTANBUL (AA) - German automotive giant Volkswagen has established a production firm in Manisa, one of Turkey's Aegean provinces, the Turkish Trade Registry Gazette said on Wednesday.

The firm -- Volkswagen Turkey Otomotiv Sanayi ve Ticaret A.S. -- was established with capital of 943.5 million Turkish liras ($164.5 million).

The company was founded to design, produce, assemble, sell, import and export automobiles, trucks and all sorts of motor and transport vehicles and their parts and components, according to the gazette.

Jens Kellerbach and Jurger Unser are board members of the company.

Murat Sahsuvaroglu, head of the Authorized Automotive Dealers' Association, said Volkswagen's investment in Turkey shows its confidence in the country.

The Volkswagen Group, established in 1937, is the owner of several vehicle brands, including Audi, Seat, Skoda, Lamborghini, Porsche, Bentley, Man, Ducati, and Scania.

Other prominent auto manufacturers -- including Fiat, Ford, Hyundai, Mercedes, Renault, and Toyota -- have manufacturing operations in Turkey.

Last year Turkey's automotive industry exports totaled $31.57 billion, according to the Turkish Exporters' Assembly.

In the domestic market, nearly 621,000 automobiles and light commercial vehicles were sold, said data of the Automotive Distributors' Association.