Ford Otosan Freezes Production. Again...

Ford Otosan (Otomobil Sanayi), one of the most battered players on the automotive market, announced once again it will stop production between April 20th and April 25th, due to the same low demand conditions seen all over the industry. The measure will send home for the respective time frame 4,505 workers, Autonews reported.

Otosan, a joint venture between Turkish conglomerate Koc Holding and American manufacturer Ford, manufactures vehicles not only for the US carmaker, but also for Renault, Toyota and Hyundai, in a market that is among the top ten auto producers in Europe.

Otosan's problems began in November last year, when it reported major sales decline, with vehicle production down to 59,082 units in the respective month, while passenger cars manufacturing decreased by 54 percent.

As a result, Otosan announced last December a massive cost-cutting program to save money and align production with the market demand. Still, the company's problems continued well into March, as the Turkish car production fell a massive 61.6 percent (to 69,445) units in January-

February, compared to the same period in 2008, according to a report submitted by the Turkish Automotive Industry Association (OSD).

Today's announcement adds to the similar closures operated by the manufacturer this year. On February 26th, Otosan shut down production for almost a month, until March the 16th. In all, Otosan suspended production seven times: between October 25 – November 2, 13-27 November, December 30 – January 12, 17-26 January, January 31 – February 16, February 26 -March 16 and March 30 – April 1st.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram Twitter
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories