Turkish Automotive Supply Industry Reduces Production Due to Coronary Virus Outbreak!

turk automotive supply industry reduces production due to coronavirus epidemic
turk automotive supply industry reduces production due to coronavirus epidemic

TAYSAD Chairman Alper Kanca: “80 percent of our members will decrease production in the last week of this month, and 15 percent closed their businesses”

Turkish sole representative of the automotive supply industry and the more than 400 members of Turkey, Automotive Parts & Supply Manufacturers Association (TAYSAD) Chairman Alper Hook, was an important statement about the effects on the automotive and supply industry of coronavirus outbreak. Emphasizing that the decline in the European automotive market will increase further in March, Kanca said, "Vehicle manufacturers started to pause production and as a reflection of this, the Turkish automotive supply industry is also forced to take measures at different levels." Stating that TAYSAD constantly shares information about the management of the crisis, Kanca said, “80 percent of our members will reduce production in the last week of this month. 15 percent decided to close their businesses for 20 weeks from 2 March. "5 percent of our members continue their activities normally, as they work for the main industrial firms that continue production or especially Far East focused firms."

The coronavirus epidemic, which has shaken the European automotive market after China and caused the most important players of the market to close its factories, has also affected the Turkish automotive supply industry. In statements about the impact of the epidemic all over the world that surrounds Vehicle Procurement Vehicle Manufacturers' Association of Turkey (TAYSAD) Chairman Alper Hook, stressed that among the most affected sectors of the automotive industry. In this context, Kanca reminded that Chinese automotive production and sales decreased by 80 percent in February and pointed out that the 10 percent decrease in the European market in February will increase further in March. Stating that mostly people stay in their homes in order to protect public health in the big markets of Europe, Kanca stated that the issue of purchasing vehicles in such an environment will not be among the priorities of people.

“Our 2020 Exports Carries Approximately 20 Percent Reduction Risk”

Reminding that vehicle manufacturers started to suspend production due to the decrease in vehicle sales, Kanca said, “As a reflection of this, the Turkish automotive supply industry has to take measures at different levels. According to the current outlook of the crisis, it would not be wrong to say that our exports by 2020 have a 20 percent reduction risk. We are trying to do our best to minimize the effects of the crisis for the industry and our country. ” This year entering the Chinese market is sourced in the world is estimated yaşanmasının contraction in the automotive sector, but TAYSAD as stressed they do not foresee a gloomy picture for Turkey market Hook, "What we experience in the last few weeks, makes it difficult to us to make a prediction for the future," he said.

Coronavirus Shot the EU Automotive Market!

Stating that almost all of the vehicle manufacturers in the EU have stopped production at all their factories for 1 to 4 weeks, Kanca made the following explanations: “Some did not give a clear date when they would start production. While Ford and BMW have announced a 4-week stance, one of the largest vehicle manufacturers in the world, according to what is said in the industry, will be completely closed until mid-May; The top five producer indicated that it plans an interrupted 8-week stop by July. When we consider the size of the epidemic and the speed of its spread, what is certain is that; For the next 2 weeks, the European automotive industry will be largely closed. In this extraordinary period, it is usual for firms to suspend production in such a crisis. End customers in the EU, vehicle users, struggle with the epidemic and cannot leave their homes. The situation is getting worse every day in Germany and Italy, one of our largest export markets. In this case, purchasing a vehicle cannot be on people's agenda. ”

“Supply Industrialists Will Have To Do Partial Work”

Noting that Turkey crisis began to affect the market as of this week Hook, "as well as vehicle manufacturers in Turkey in the European market, has announced that almost all break in production for some time. Tofaş and OYAK Renault, on the other hand, considered their orders for both domestic and non-virus epidemic markets and stated that they will continue production unless they have problems in supply. In addition, some European OEMs continue to purchase parts from their suppliers to make safety stocks, while announcing that they have stopped production. This means that our supply industrialists will also have to do partial work without stopping production completely. ”

It Will Take Several Months, Factories Will Stay 'Closed' For More Than A Few Weeks!

Emphasizing that all companies have changed their production plans for 2020 due to the crisis in question, Kanca said, “It is very difficult to give a figure on how it will be reflected on the end of the year. Everyone's curiosity is how long this trend will continue. We; We think that we have entered a period that will take at least a few months and during this period, which will require the factories to remain 'closed' for more than a few weeks. The normalization of the works is possible with the normalization of vehicle sales in the European market. This is only possible with the solution of the Covid-19 problem. Problems have to be solved until both Turkey and the normalization of production and sales in the European markets due to follow with, "he said.

Stating that TAYSAD shared information about the management of the crisis with all its members in this process, Kanca also mentioned the results of the survey they conducted with the focus member group last week. Kanca said, “80 percent of our members are planning low production in the last week of March. Most of these companies spend the next week in this way and monitor the situation and plan to develop a strategy for the first week of April and beyond. "15 percent of our members stopped their entire company activity for 20 weeks and closed their businesses for 2 weeks as of 5 March due to production technologies or their customers taking a break from production." Kanca said that XNUMX percent of the members continue their activities normally, as they work for the main industrial firms that continue production or especially Far East focused firms.

“Short Term Work Allowance Legislation Should Be Updated”

Referring to the status of the employees, Kanca said, “Due to the uncertainty of how long the crisis will continue, the short-term work allowance legislation should be updated urgently, and applications should be processed very quickly. When we look into the measures described Turkey's industrial companies with a value pack important European countries, measures for business, very serious amount of support must be increased. The crisis we are in threatens the health of society firstly, and then seriously the deterioration of the economy and the increase in unemployment. The coronavirus epidemic, which we all expect, is taken under control as soon as possible and it is overcome with the least damage for our country and the world. ”

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