Chinese automaker Chery on Wednesday denied reports that it plans to invest $1 billion in an electric vehicle (EV) production facility in Turkey, contradicting an earlier announcement from the Turkish government.
The Turkish presidency stated that Chery would establish a manufacturing plant in the Black Sea province of Samsun with an annual production capacity of 200,000 EVs. The announcement followed a video of Turkish President Tayyip Erdogan presenting a “certificate of appreciation” to Chery International President Guibing Zhang for the alleged investment. Bloomberg initially reported the news.
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However, Chery refuted the claim, stating it has no plans to build a factory in Turkey. “The report by the foreign news wire is untrue. Chery has no plans to build [a] factory in Turkey. We are seeking partnerships with a third party to expand the business in Turkey,” the company said in a statement.
A Turkish industry ministry official, speaking to Reuters on condition of anonymity, said that Chery’s partners, rather than the automaker itself, would be making the investment. “It will be a production facility in Samsun for electric and hybrid vehicles and their parts, planned to reach up to $1 billion, to be carried out by Chery partners,” the official said.
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The official added that the investment would include a research and development center for mobility technologies and could create up to 5,000 jobs. “It is expected that these Chery-brand vehicle production facilities will provide employment for 5,000 people,” the official said.
The situation remains unclear, with no confirmation of whether the discrepancy stems from a misunderstanding, miscommunication, or political maneuvering. Turkey and Chery have been in discussions about potential investments since last year, when Erdogan met Zhang at a business event in Istanbul.
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If Chery or its affiliates proceed with a production facility in Turkey, it would be the second Chinese automaker to do so. BYD announced a $1 billion plant in western Turkey last year. Chery already operates an EV plant in Barcelona in partnership with Spanish manufacturer Ebro-EV Motors, highlighting its ongoing expansion in Europe.
For Chinese automakers, Turkey presents a strategic location for production due to its customs union with the European Union and lower labor costs compared to other European markets. This comes amid the EU’s introduction of provisional tariffs on Chinese-made EVs, prompting manufacturers to explore alternative production hubs.