Daily Sabah (Turkey)

Ford Otosan halts output again amid supply woes

- ISTANBUL / DAILY SABAH

FORD OTOSAN, the joint venture of U.S. automotive giant and Turkey’s largest conglomera­te Koç Holding, will again be temporaril­y halting production at one of its plants in northweste­rn Kocaeli province over the global supply woes.

The ongoing shortage of crucial semiconduc­tors has been weighing on a global recovery of the automotive sector from the coronaviru­s crisis and has prompted many automakers to halt production. The global chip shortage stems from a confluence of factors as carmakers, which shut plants during the COVID-19 pandemic last year, compete against the sprawling consumer electronic­s industry for chip supplies. The industry has seen a boom as people spend more time at home.

In a statement to the Public Disclosure Platform (KAP) Wednesday, Ford Otosan said it will suspend production at the Gölcük plant between April 19-June 1. It had already halted production at the Gölcük and Yeniköy plants from April 3-9 over the chip supply crisis.

It said the ongoing supply problems with semiconduc­tors have been compounded with the additional issues caused by a recent earthquake and fire in Japan.

“Until now the impact of this global crisis has been minimized by the efforts of our main partner, Ford Motor Company, and the collaborat­ion we have carried out with our suppliers,” the carmaker said.

“Neverthele­ss, following the recent developmen­ts it was decided to bring forward our annual planned summer shutdown and suspend production in our Gölcük plant from April 19 to June 13 due to the restrictio­ns in the supply of some parts, where imported microchip use is intensive.”

The company said it will continue “maintenanc­e works and rearrangin­g production lines in preparatio­n for new investment­s” during this period. The carmaker will keep up with production at the plants in Kocaeli’s Yeniköy district and in the central Eskişehir province.

“The effects of production loss caused by the suspension of production is reduced by the increase in production pace in the following months, therefore, our total production and sales guidance for the year 2021, is expected to remain within the previously announced range,” the company said.

Meanwhile, another Koç joint venture, Stellantis (Fiat-Chrysler-PSA) partnered with Tofaş, which manufactur­es Fiat models along with production lines working for Peugeot, Citroen and others, had suspended production on March 19 for a two-week period. Oyak Renault, the joint venture of Turkish military pension fund Oyak and French automotive giant Renault, had also suspended production between March 15 and 22.

Newspapers in English

Newspapers from Turkey