BERLIN -- Volkswagen Group is nearing a decision on building a new, multibrand plant in Turkey, VW brand's production head, Andreas Tostmann, said.
"We are in final talks with Turkey," Tostmann told reporters in Berlin on Thursday.
Tostmann said he expected the talks with the Turkish government to be completed in two weeks or "perhaps earlier."
Sources close to the company told Reuters that the factory would cost more than 1 billion euros ($1.09 billion).
The sources said the plant would likely produce 300,000 cars a year including the VW Passat and the near identical Skoda Superb midsize models for export to eastern Europe.
It would employ near 4,000 in Manisa near Izmir in western Anatolia and construction could start at the end of 2020 with production starting in 2022, they said.
Earlier this month, Skoda's production chief, Michael Oeljeklaus, said VW Group will decide on the plant by the end of October.
Turkey is said to be VW's favored location for the factory but another site in Bulgaria is also being considered, according to reports.
VW is worried about steep Turkish taxes on larger cars that limit most buyers and local producers to smaller engine sizes.
Turkey is trying to find a formula to address VW's concerns without putting automakers already producing in the country at a disadvantage, Reuters reported earlier this month.
A deal in Turkey could be politically controversial given European Union concerns regarding what it sees as constraints on freedom of expression and demonstration rights under President Tayyip Erdogan. VW's argument is that Turkey is a candidate for EU membership.
Reuters contributed to this report
