Turkish automaker Oyak Renault pauses output for 10 days on microchip shortage

Turkish automobile manufacturer Oyak Renault has paused output for 10 days at most of its production departments as of March 25, due to the ongoing microchip shortage, according to a company notice seen by S&P Global Commodity Insights.

“We have obliged to make changes to our production plans on electronic components supply problems which have been continuing to affect the global automotive industry,” the company said.

Oyak Renault paused output for 15 days as of Jan. 24 for the same reason, while Turkey’s other major auto producer, Toyota, also suspended production at its Turkish plant for five days as of March 7, as previously reported by S&P Global.

These decisions follow output cuts by major producers throughout 2021.

Bursa-based Oyak Renault is a joint venture between France’s Renault Group and Turkey’s Oyak — parent company of Turkey’s largest integrated steel producer Erdemir.

These stoppages have also been affecting the sector’s steel demand, sources said.

Oyak Renault has 378,000 units/year of automobile production capacity and 920,000 units/year of motor production capacity.

Ongoing microchip shortages could continue to affect automotive output in Turkey in the coming months, as the global shortage is expected to continue albeit at a diminishing pace throughout 2022, according to industry reports.

According to the latest Turkish Automotive Manufacturers’ Association (OSD) data, total vehicle production in Turkey fell 12% on the year to 196,164 units in the first two months of 2022, while automobile output fell more sharply 20% to 109,322 units, amid ongoing microchip shortage.

— Cenk Can