As global financial crisis hits Turkish automotive market, leading auto companies in Turkey announced suspending production for more than two weeks, the semi-official Anatolia news agency reported on Friday.
Ford Otosan, a joint venture between Turkish conglomerate Koc Holding and struggling U.S. carmaker Ford, said on Thursday that it would halt production between Dec. 20, 2008 and Jan. 12, 2009 at its Kocaeli and Inonu factories due to slumping demand at home and abroad, said the report.
This is the third time for Ford Otosan to suspend production since October.
Also on Thursday, Fiat's Turkish unit Tofas Turk and Oyak Renault, a Turkish company co-owned by OYAK and Renault S.A., announced a suspension of production between Dec. 27 and Jan. 12.
According to the report, Mercedes-Benz's truck production company in Aksaray, western Turkey, has also decided to suspended production for five weeks. Some 160 workers of the factory will leave their jobs permanently, with six months salary paid in advance.
Meanwhile, Japan's second-biggest automaker, Honda, announced on Wednesday that it would suspend previously announced plans for an increase in production capacity at Turkish plants in an attempt to deal with the effects of the economic crisis.
The Turkish automotive sector has enjoyed strong growth in recent years, but in November alone, its entire vehicle market shrunk 58 percent, while the automobile market contracted 56.6 percent, said the report, citing data revealed by the Automotive Manufacturers Association (OSD).
At the same time, exports also continued to decline in November. As European market continue to shrink, total vehicle exports from Turkey declined 41.7 percent, while automotive export declined 44.4 percent, said the report, adding that some 90 percent of Turkey's vehicle exports were addressed to Europe, whose automotive market narrowed 25.8 percent in the same period.
Source: Xinhua
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