The position of carmakers in Turkey
- The tensions between Europe and Turkey about the political situation in Syria and Iraq, could intensify particularly following opposed positions of the various stakeholders. The economic impact would be important for Turkey inso far as a set of industries are implanted locally, including the automotive industry.
- Six manufacturers currently have auto plants manufacturing on Turkish territory, most of which (75%) is exported to Europe. Renault, FCA, Ford, Toyota, Hyundai and Honda have six plants in the western part of the country. An escalation of the diplomatic situation could pose difficulties for production in these plants.
- Manufacturers have indeed withdrawal plans to move their manufacturing to other regions, but only two could move without too much difficulty: Renault, which has sites in Flins (France) and Novo Mesto (Slovenia) for the repatriation of the Clio, and FCA that has the Mirafiori (Italy) and Kragujevac (Serbia) plants for the repatriation of the Doblo and Fiorino, and Cassino (Italy) for the repatriation of the Tipo. These plants have underutilized capacities. Honda could also repatriate production to its British plant of Swindon.
- For Toyota, Ford and Hyundai, it would be more complicated, because those manufacturers do not have enough capacity in Europe to do the transfer. It would be necessary to consider manufacturing in Asia (Japan, Korea, India), which would move production further away from all the countries purchasing these models, because of course, none of these manufacturers are planning to build plants in Europe.
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