Renault may reconsider Turkey investment amid instability from strike
ISTANBUL (Reuters) -- Renault could reconsider investing in Turkey following a labour dispute ceased production at its Turkish joint-venture Oyak Renault, the French car-maker head of Eurasia, Jean-Christophe Kugler, stated.
Fiat's joint-venture, Tofas, and Ford Motor device Ford Otosan, along with Oyak Renault, stopped output this week due to the dispute over-working problems.
Kugler informed reporters that Turkey was a high potential industry which Renault had wager on for the long term. The difference of opinion was a danger not only to Turkey, a leading automotive components manufacturer, but in addition to the international business. "If we find instability coming we are going to reconsider our investing," he informed newsmen in the Istanbul autoshow on Thursday.
Oyak Renault, a joint-venture between Renault and also the Turkish military pension fund, constructs the Clio and Image sub-compacts, along with the Megane and Fluence compacts, according to Automotive News Europe's Guidebook to European Assembly Plants. The manufacturing plant made about 318,000 automobiles last year, business organization amounts reveal.
Business Minister Fikri Isik said on Thursday he wished to see an instantaneous resumption of output, stating employees' requirements could be mentioned while creation continues. Isik mentioned the dispute was hurting Turkish exports but production losses so far may be regained.
Workers say the dispute blew up after union Turk Steel last month negociate a 60% wage hike for employees in a plant run by components manufacturer Bosch Fren, but neglected to procure a comparable deal elsewhere. Tofas employees say Turk Steel is made together with the acceptance of Tofas direction and will not principally serve their passions. In addition they need a pay boost.
Automotive News Europe contributed to this report
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