Economy Minister Darko Horvat said on Wednesday he would like German car maker Volkswagen (VW) to come to Croatia and that he would do all in his power to make that happen, but noted that it was too early to talk about that.

Speaking in an interview with Croatian radio, Horvat was asked about the likelihood of VW arriving in Croatia after the company scrapped its investment plan in Turkey, to which he said he would like this €1.6 billion investment here.

“We have prepared the infrastructure and we would like such a giant in Croatia, but it is too early too talk about VW at this point. If I get a chance to present Croatia’s offer in a direct talk, I will do so,” the minister said.

Horvat said he did not expect German Chancellor Angela Merkel and Prime Minister Andrej Plenkovic to discuss the matter because VW is a private company.

Speaking of the ailing Djuro Djakovic metal and mechanical engineering group, Horvat said that the group includes three key business entities, of which one is in great trouble and has no prospects, while two have a future, one of them being Special Vehicles.

He said that the Special Vehicles unit needed to ensure 93 percent of occupation of its capacity, while the government would cover 7 percent through orders for the Croatian armed forces. He said that the problem was that some contracts were signed without being completed.

“We are looking for ways for the government to step in to ensure that these three contracts are completed and goods are delivered, and then, after collecting payments, at least a portion of loans could be repaid,” the minister said, adding that he had talked with several companies from Austria and Germany which might help.

Horvat announced a bailout plan before the end of the year.

“Djuro Djakovic might become a logistics centre for repairing and maintaining Western-made weapons. We are in talks with the US government and are not far from a final decision,” Horvat said.

He said that the US government investment would be about $25 million and the Croatian government would contribute the same amount. That would ensure that the seven percent of Djuro Djakovic’s capacity currently used by the Defence Ministry was increased to between 35 and 40 percent, he added.

Notwithstanding the possible agreement with the US government, Djuro Djakovic would have to seek deals for about 50 percent of its capacity on the open market, Horvat concluded.