Local carmakers may suspend production in May, June

Carmakers in Turkey may be forced to suspend production in May and June because of the supply problems that occur due to lockdowns China is imposing to bring the COVID outbreak under control.

In April, many factories in Shanghai halted their operations, while long delays at the port in the city caused challenges, people from the industry said, adding that those factors are likely to exacerbate the problems in the global supply chain.

Carmakers in Turkey, which are already facing problems, such as semiconductor and raw materials, are closely watching the developments in China, and the summer months for car producers will not be easier.

The latest news from Shanghai shows that the situation has become unmanageable, said executives from the companies operating in the automotive supply industry.

They also said that because of the decline in the volume of deliveries and the rising prices, the companies reached a point where they could not make a profit, adding that they will have problems supplying parts to the main automotive sector in May and June.

They voiced concern that the issues related to the semiconductors are likely to continue in the period ahead because of the lockdowns in China.
People from the industry said that companies, which produce passenger cars, are expected to temporarily halt their operations in May and June.

Carmakers Renault, Tofaş and Hyundai may be affected more, but Toyota can continue its production activities, they said.

Renault last month already partially suspended production.

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