Andreas Tostmann, Volkswagen's Executive Board member in charge of production, said the contract was now being discussed and the agreements reached orally were in the process of being written down on paper.

"We are in the final negotiations for a new factory. We expect the matter to be decided in the next two weeks," he said.

VW Chief Executive Herbert Diess had earlier held a meeting with President Recep Tayyip Erdogan.  It was stated that the parties agreed to set up the factory in Manisa and that the government would provide VW with a number of amenities in exchange for the investment.

The factory that VW plans to build in Turkey is expected to be capable of producing 300 thousand vehicles per year.

The production capacity of the Turkish automotive sector is currently around 2 million annually. The investment is expected to create additional employment of 4 thousand people.

ILKHA