AUTOMOTIVE INDUSTRY Emrah KUTLU Zeynep AVCIOĞLU AUTOMOTIVE INDUSTRY Key driving sector of the economy Closely tied to other sectors of the economy Prime buyer in basic industries Requires complex and multidisciplinary technology AUTOMOTIVE INDUSTRY Intense competition in the market
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PORTER’S FIVE FORCES MODEL
- National production and development
- Level of technology
Table- 1 PRODUCTION IN TURKEY
Source: OSD, MVI Monthly Report
Source: ISO, 500 Büyük Sanayi Kuruluşu Anketi, 2004
Source: www.wbr.co.uk, About the Turkish Automotive Industry
Source: OSD, 2005
a)High-skilled human resources both in production and management
b) Sustainable and improvable competitive workforce with low labor cost and culture of productivity
c) Accumulated technological know-how and rapidly growing investments in R&D
d) Quality management systems
e) Widespread distribution and marketing networks
f) Integration with world automotive industry since 1990s
a) The most developed automotive industry and a unique export andproduction base in the region with close bilateral relations with EU, G8, Eurasia
b) Export experience and strong export markets
c) Easy access to potential emerging markets
The Weakness of the Turkish Automotive Industry
a) Unstable domestic market
b) Loss of quality and quantity in manpower as a result of the crises caused bythe weak economy of the country
c) In adequate investments in the sector
d) High costs of raw materials due to capacity utilization and production below economies of scale
e) High sales taxes and gasoline prices
f) Lack of international strategy
g) Excess capacity
h) Insufficient export incentives
- The automotive industry in Turkey has a significant potential for progress and export capacity.With the completion of global vehicle projects currently under progress, Turkey will soon reach an annual vehicle export capacity of at least 500,000 units.
- In the near future, Turkey will be the world‘s alternative production center of vehicle and parts, and the automotive sector will become one of the leading sectors of the manufacturing industry, with exports of $8-8.5 billion.
Basic elements of the national export strategy to reach these goals are;
and quality training
Globalization will continue increasingly in the automotive sector.
The automotive industry in Turkey is in a position where it canproduce at global standards.It has developed its competitive capabilities, and a structure that can apply common marketing strategies with licensing countries.
The sector is able to create more added values.
Having a competitive structure, having the power to manufacture quality and consistent products with new technologies, and most effectively, having the cost-price advantage, puts Turkey in a position of being an important manufacturing base and an important market, from the perspective of the global automotive.