Turkey’s Ford Otosan cancels shift as labor unrest hits suppliers

ANKARA - Reuters

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Ford Otosan, the Turkish arm of Ford, cancelled an extra working shift on May 19 citing supply chain problems amid widening labor unrest in Turkey’s automotive sector.

Production at two major carmakers, Oyak Renault and Tofaş, which account for more than 40 percent of Turkey’s annual car production, was halted earlier this week due to demands for better working conditions. 

The protest started on May 14 at Turkey’s largest car factory, a plant in the northwestern city of Bursa run by Oyak Renault, a joint venture between France’s Renault and the Turkish army pension fund.

“As it was not possible to supply parts from intermediate product makers in Bursa, the preplanned extra working shift has been cancelled,” Ford Otosan said in a statement to Reuters.

On May 15, the dispute spread to a Tofaş plant. Tofaş, owned by Italy’s Fiat and local conglomerate Koç Holding , said it had halted production until the labor action was resolved, adding it did not expect the stoppage to affect sales.