The automotive industry is undoubtly an area that has significant effects concerning to the world economy as well as influencing every household world wide. Changes in the supply and demand of automobiles impact the current and future purchases of consumers. Consumers must determine the budget that they can allocate to certain necessities. Because most consumers have a limited budget, the budget spent on transportation it limited. Since numbers of industries have an influence on the economy, the automotive industry has potential impacts exceeding that of other industries.
The aim of this study is providing a brief understanding of general overview of automotive industry and the importance of the industry in large. In this framework, this study initially will look at the conditions led to economics crises in 2001 and 2008 and the consequences of those crises, from interest and inflation rates to consumption. The following part of the study will evaluate the impacts of 2001 and 2008 crises over Turkish automotive industry. In this context, this study will look at changes in production and sales and employment levels in Turkish automotive industry by making comparison between pre-crisis and in-crisis periods.
TABLE OF CONTENTS
2. AUTOMOTIVE INDUSTRY
2.1. Industry Overview
2.2. Brief History of Automobile Industry
2.3. The History and Development of the Turkish Automobile Sector
7 2.4. The Importance of the Automobile Industry
2.4.1. Contribution of Turkish Automobile Industry to Exports
11 2.4.2. Contribution to Turkish Transportation and Logistics
11 2.4.3. Contribution to Technology and the Attraction of Foreign Investment
12 2.4.4. Contribution to Labor Force
2.5. The Major Players in the Market
3. 2001 AND 2008 ECONOMIC CRISIS
3.1. Anaemic catching-up process until the 2001 economic crisis
14 3.2. The 2000/2001 crisis
3.3. The ongoing economic crisis of 2008
3.3.1 The mid-2006 episode
3.3.2. Significant negative impact in the real economy
4. 2001 CRISIS AND AUTOMOTIVE INDUSTRY
4.1. Impacts of 2001 Crisis on Turkish Automotive Industry
23 4.1.1. Production Dvelopment Turkish Automotive Industry
4.1.2. Imports of Turkish Automotive Sector (1993 –2003)
24 4.1.3. Exports of Turkish Automotive Industry (1993 –2004)
26 4.2. Impacts of 2008 Crisis on Turkish Automotive Industry
28 4.2.1. Market
4.2.3. Foreign Trade
LIST OF FIGURES
Figure 1: Manufacturing Plants of Turkish Automobile Firms
9 Figure 2: Real GDP per capita (United States=100)
Figure 3: Growth of real GDP per capita
Figure 4: Real GDP Growth
Figure 5: Inflation and the exchange rate
Figure 6: Inflation and interest rate
Figure 7: Imports of Turkish Automotive Industry (Milion Dollar)
24 Figure 8: Exports of Turkish Automotive Industry (Million USD)
24 Figure 9: Total market change(%)
Figure 10: Total Production and Automobile Production
Figure 11: Export/Total production (Including Tractors)
LIST OF TABLES
Table 1: Automobile Manufacturers in Turkey
Table 2: Changes in real GDP per capita, 1950-1998
Table 3: Production of Turkish Automotive Industry in Product Categories
21 Table 4: Vehicles and Spare Parts Imports (USD)
Table 5: Total production and exports in Turkish automotive industry(Units)
25 Table 6: Capacity utilization rates (%)
The auto industry has been an established market for the United States for many years. A boost to the market came at a time in when the United States was in the worst possible position for growth of many industries. During the great depression not many companies were turning a profit. President Roosevelt implemented a way to stimulate the economy by building roads. This...
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