Car-makers leaving Turkey? An opening for Greece

29 May 2018
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Rumours that large multinational companies are considering leaving the Turkish market are resurfacing, following the ongoing economic instability and the uncertain political atmosphere in the country.

Investors are cautious, with the currency plummeting and seeing Turkish President Recep Tayyip Erdogan’s decision to entangle his country in the Syrian adventure, while relations with the US, the EU, and neighbouring countries constantly deteriorating.

Turkey is on the verge of a major monetary crisis. The successive warnings from rating agencies have created a strong uncertainty for existing and future investors.

The inherent problems of the Turkish economy, Erdogan’s intense and aggressive nationalist rhetoric towards formerly powerful economic allies, the country’s enormous deficit, the high inflation rate and the freezing of Turkey’s EU accession talks, has caused economic turmoil in the formerly investor-friendly Turkey.

The insecurity of existing businesses is palpable, and there is now a problem of prestige as well-known brands are being produced in a country waging war. Large automakers have production facilities in Turkey, supplying most of Europe and Russia. Currently, in Turkey, over 1,200,000 vehicles are manufactured each year, is the sixth largest producer of passenger cars and second in vehicles of 3.5 tonnes or more.

Sources say that in a number of automotive headquarters, proposals are being tabled for possible countries that could accommodate production units, including Greece, whose geopolitical position is well suited to the transport of vehicles.

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