(Bloomberg) -- President Recep Tayyip Erdogan has just told his top lieutenants to change their rides to Volkswagen AG's Passat model, after the carmaker chose Turkey as the location for its next big plant.
Erdogan ordered top officials at his ruling AK Party on Oct. 1 to move to the Passat model after their current rental contracts expire, according to two officials with knowledge of the notification who wanted to remain anonymous while discussing internal party matters.
While the Turkish president's choice will have a direct impact on the fate of merely 19 rental cars at the ruling party headquarters, it is expected to set a precedent for thousands of party officials.
The move boosts the standing of the German manufacturer after it established a Turkish unit, paving the way for an investment of 1.3 billion euros ($1.4 billion). The planned unit will have an annual production capacity of around 300,000 units, some of which will be Passats.
Read more on Volkswagen's $1.4 Billion Investment in Turkey
Top AK Party executives currently use 19 Audis, also manufactured by the Volkswagen Group, the two officials said. The rental contracts for most of those cars will expire in about two months. The shift to Passats will also set an example for rentals by government agencies, the people said.
Turkish state institutions were using more than 110,000 vehicles as of 2018, Sozcu newspaper said in February, citing opposition politician Gursel Tekin. The government spent more than 537 million liras ($94 million) last year for vehicle rentals, Tekin said.
--With assistance from Taylan Bilgic.
To contact the reporter on this story: Firat Kozok in Ankara at fkozok@bloomberg.net
To contact the editors responsible for this story: Onur Ant at oant@bloomberg.net, ;Benjamin Harvey at bharvey11@bloomberg.net, Taylan Bilgic
©2019 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
