Turkey's automotive industry faces a potential crisis as EU subsidies and market access rules threaten its economic ties with Europe.
Turkish automotive industry faces new challenges
The Turkish automotive industry, which has been struggling for several years, could face additional difficulties with the proposed European Union (EU) legislation aimed at protecting European manufacturers. This law, expected to be adopted by the European Parliament in December, seeks to shield EU companies, especially in the automotive sector, from competition, particularly from China.EU law restricts non-member access to subsidies
Under the proposed law, industries from non-EU countries will no longer be eligible for European subsidies and will face restrictions on accessing public markets. Turkey, which exports over 30 billion dollars worth of new vehicles to the EU annually, mostly produced by European companies, is concerned about the impact of these restrictions on its automotive sector.Turkey seeks inclusion in EU program
Ankara has requested that Turkey be included in the program, similar to the United Kingdom, but has faced rejections, including from France. Kemal Yazici, president of the Association of Automotive Exporters, warns that the change could shift the current win-win relationship between Europe and Turkey into a losing one for both sides.Renault's investment in France raises concerns
Among European manufacturers in Turkey, Renault operates one of its largest industrial sites in Bursa. However, the company has announced 10 billion euros in investments over five years in its French factories, where it plans to increase production. This has raised concerns about the future of the Bursa plant, which can produce up to 390,000 vehicles annually.EU-Turkey relations under scrutiny
The proposed law has sparked discussions about the broader relationship between Turkey and the EU. The weekly Gazete Oksijen highlights that the support from Germany and several Northern European countries has not been enough to defend Turkey's inclusion. The European Parliament must approve the text for it to take effect, but some members are hesitant due to concerns over Turkey's democratic and legal developments.Regional tensions complicate the situation
Turkey's strategic position at the crossroads of the Black Sea and the Mediterranean makes it an important player in European security, particularly regarding Ukraine and the Middle East. Rising tensions in the Mediterranean, especially with Greece and Cyprus, add complexity to the situation. Media outlets suggest that excluding Turkey from the agreement could risk regional stability.Economic and geopolitical stakes
The significant volume of trade between the EU and Turkey has led to a pragmatic approach during crises. While the EU aims to protect itself from competition, especially from China and the United States, sacrificing Turkey could have unintended consequences. The media questions whether Europe is prepared for a Turkey that has nothing left to lose, potentially leading to more instability.