Honda’s Turkey plant closure takes place in collapsing market

News About Turkey - NAT
2 Min Read

Honda is closing its factory in Turkey as the country’s new-car sales collapse.

Vehicle sales in Turkey dropped 35 percent last year to 612,607 as the value of the local currency fell, figures from JATO Dynamics show. Honda’s sales bucked the trend by rising 8.5 percent due to the popularity of the locally made Civic sedan, Turkey’s fourth best-selling car last year.

However, Honda’s January sales were down 40 percent as the overall market collapsed by 59 percent.

Honda said on Tuesday that it will close its assembly factories in Gebze, Turkey and Swindon, England, as part of a global restructuring to improve capacity utilization.

Both factories build the Civic compact car – the hatchback is produced in Swindon and the sedan in Gebze. Honda said the plant closures by 2021 were planned to coincide with the end of the current Civic’s lifecycle.

“This is not related to the slowdown in the Turkish economy,” Honda said in a statement.

Honda said it will focus production on its higher volume regions of China, Japan and the U.S., where it would invest in new electrified cars.

Other automakers including Ford, Toyota and Fiat Chrysler Automobiles are being hit by Turkey’s economic crisis, but none have announced factory closures.

Source: Auto News

TAGGED:
Share This Article
Founded by a small group of Turkish/Kurdish scholars who have been subjected to persecution at the hands of the Erdogan dictatorship, News About Turkey (NAT) has emerged as a platform that is both exceptional and invaluable. Our objective is to provide you with a comprehensive and sophisticated understanding of the events and developments in Turkey (Türkiye), a country with profound historical and geopolitical importance, a vibrant culture, and a strategic location. Our founders, who have been purged by the Erdogan regime after the so-called coup attempt, are aware of the significance of journalism that is both free and independent. Because of this understanding, we are committed to providing reporting and analysis that is both objective and comprehensive. To give you the most thorough coverage of Turkey, we go further than just scratching the surface. Keep in touch with us so that you can have a better understanding of Turkey's developing story as well as vital and comprehensive news items. Whether you are a resident of Turkey, a member of the Turkish/Kurdish diaspora, or simply someone who has a strong interest in this vital country, we are the most reliable source for news that not only informs but also inspires and engages you.
Leave a comment