Renault says could reconsider Turkey investment amid instability from strike

Renault could reconsider investment in Turkey after a labour dispute stopped production at its Turkish joint venture Oyak Renault, the French car makerand’s head of Eurasia said on Thursday.
Tofai and Ford unit Ford Otosan as well as Oyak Renault have all halted output because of the dispute, which comes weeks ahead of a June 7 parliamentary election.
Renaultand’s Jean Christophe Kugler told reporters Turkey was a high-potential market which Renault had bet on for the long term and the dispute was a threat not only to Turkey, a major automotive parts producer, but also to the global industry.
Earlier, Industry Minister Fikri Iiik said he wanted to see an immediate resumption of output, saying workersand’ demands could be discussed while production continues.
Speaking to reporters at a car show in Istanbul, Iiik said the dispute was harming Turkish exports but production losses so far could be recovered.
The action over working conditions and pay has spread to a number of parts suppliers clustered around the northwestern city of Bursa, the Turkish auto industry hub.

SOURCE: Today’s Zaman