Renault sounds investment warning

Ford's Turkish joint-venture (JV), Ford Otosan, says it has resumed production at its two sites in Turkey following a labour dispute at its component suppliers that affected the supply of parts. "Since the part supply problem is resolved, manufacturing operations have started in Golcuk and Yenikoy Plants effective from 21 May night shift," Ford Otosan said in a statement to the Borsa Istanbul stock exchange. The automaker – Ford's JV with Turkey's Koc Holdings – stopped production at its plants on Wednesday (20 May). Meanwhile, Renault has warned that it may reconsider its investment plans in Turkey if the labour dispute continues. "If we see instability coming we will reconsider our investment," said Jean Christophe Kugler, Renault's Eurasia head. Turkish industry minister Fikri Isik has urged the workers to resume production, adding that their demands for better pay and working conditions can be discussed while production continues.

Significance: Ford was the third automaker to be affected by labour disruption in the country. Earlier this week, the local JVs of Renault and Fiat, which operate plants in the northwestern city of Bursa, suffered production stoppages as workers downed tools demanding higher wage. Workers at these automakers were supported in their strike action by employees at component suppliers Çoskunöz Holding, Beltan Trelleborg Vibracoustic (TBVC), Delphi, SKT, Ototrim Automotive, Rollmech, and Mako. The impact on Ford was indirect, largely stemming from supply-chain disruptions. While Ford has restarted production, there is no sign of output resuming at Renault or Fiat, which account for nearly 40% of the country's vehicle production.

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