Struggle in auto industry in Turkey

Top European automotive executive said Turkey struggling in automotive industry because of fluctuations in foreign-currency rates. So they are troublesome for auto companies seeking to operate in Turkey.

Volvo Overseas Chairman Lex Kerssemakers told the press in
Istanbul that currency rates are constantly fluctuating in Turkey so they are
hard to predict whether a foreign automotive company would be able to earn money
in this market.

"The balance in the currency rates is crucial for stability," he said. "As Volvo, we keep supporting our office in Turkey, because this is an important market and represents a significant potential. However, the unsteadiness in the currency is not helpful. We are working hard to support our distributors in Turkey so they manage to survive the crisis."

Speaking on the impact of the global turmoil in the automotive sector, Kerssemakers said the character of the current crisis does not allow people to set forth a forecast of the future.

"That is why we evaluate the current economic developments on a weekly basis," he said. "For instance, as Volvo, we thought that we saw the bottom of the crisis in December. But things have gone even worse so far. While even the economists cannot predict what is next, there is not much to say about the future for carmakers."

"The main reason for the crisis of the global automotive sector is the absence of liquidity," Kerssemakers added. "This is the main factor for the decline in car sales all over the world. Both suppliers and customers are left stranded due to the problems in cash flow."