Ford's 20.5 billion Turkish lira ($2.6 billion) investment to increase capacity at its Transit van factory in Turkey will enable the plant to build the Volkswagen Transporter midsize van at the plant, a source familiar with the matter said.
Ford's joint venture company in Turkey, Ford Otosan, said last week that it will invest in its Kocaeli plant near Izmit, to increase the plant's annual capacity to 650,000 units from 440,000 by the middle of 2026.
The money will be used for "long-term new-generation commercial vehicle projects," Ford Otosan said in a filing to the Turkish stock exchange.
Ford and VW announced an industrial alliance in 2019 for the joint engineering and production of vans, as well as other projects such as autonomous cars and an electric car for Ford on VW's MEB platform.
The companies said Ford would engineer and build a new VW Transporter van alongside its next Transit Custom van, with production starting in 2022. They also said VW would build a compact van for Ford alongside its VW Caddy in Poznan, Poland.
VW began sales of its fifth-generation Caddy last month and the Ford version to replace the Tourneo/Transit Connect is due next year.
Ford and VW have not said where the Ford-based VW Transporter will be built but the source said that it will be at Ford's Kocaeli plant.