July 12, 2019 / 8:29 AM / 2 months ago

UPDATE 1-Volkswagen to build new plant in Turkey - magazine

(Adds VW comment, spike in Dogus Otomotiv shares)

BERLIN/HAMBURG, July 12 (Reuters) - German carmaker Volkswagen is planning to build a multi-brand production plant in Turkey, a German trade magazine reported on Friday, boosting shares in Volkswagen’s Turkish distributor Dogus Otomotiv.

Automobilwoche, which did not cite its sources, said Volkswagen’s supervisory board on Thursday decided to build a plant near the western coastal city of Izmir.

It added that Volkswagen’s subsidiary Skoda would be one of the brands produced there.

In April, Czech daily Hospodarske Noviny reported that Skoda was choosing between Bulgaria or Turkey as the site for a planned new plant.

A spokesman for Volkswagen’s supervisory board told Reuters the plans for a new site were being firmed up but had not yet been finalised.

Shares in Volkswagen’s Turkish distributor Dogus Otomotiv jumped as much as 11.6% on Friday following the report that said Qatar, which owns a 17% stake in Volkswagen, was urging the supervisory board to pick Turkey for the plant. (Reporting by Riham Alkousaa and Jan Schwartz Editing by Michelle Martin)

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