The factory in Germany is closing
By Manolis Kostidis – Ankara
A “vote of confidence” in the Erdogan government’s economic policy seems to be given by the German manufacturer of buses and trucks, MAN.
The company owned by the Volkswagen Group has announced it is going to close the bus factory it keeps in Munich and will transfer all production to the factory, which is already in operation in Turkey! The company’s main goal is to reduce cost. In Ankara there is already in operation a factory that manufactures buses for MAN, which employs 1700 Turkish workers. According to MAN, the 400 German employees in Munich will work in other factories of the Volkswagen Group.
The complete transfer of all production in Turkey will be completed over the next 11 months . According to MAN officials, the labour cost in Turkey is about 5 Euro per hour, while in Germany it is over 36 Euros.
The MAN factory in Turkey in 2013 has made exports to 42 countries worldwide and its turnover reached 300 million Euros.
MAN’s competitor Mercedes-Benz has two factories in Turkey since 1995, one producing buses and other vehicles, while in 2005 it has expanded its production.
In the bus factory in the Hoşdere district of the city Aksaray in central Turkey, 4000 buses per year are being produved. The total cost of the investment exceeded 340 million Euros. 70% of the production is exported to 73 countries around the world. The factory has an area of 127,000 square meters .
The two German companies appear satisfied with the economic environment in Turkey and apart from their extended presence in the county, they continue to invest.