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ABSTRACT

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
Pages
1. INTRODUCTION5
2. AUTOMOTIVE INDUSTRY6
2.1. Industry Overview6
2.2. Brief History of Automobile Industry7
2.3. The History and Development of the Turkish Automobile Sector7 2.4. The Importance of the Automobile Industry11
2.4.1. Contribution of Turkish Automobile Industry to Exports11 2.4.2. Contribution to Turkish Transportation and Logistics11 2.4.3. Contribution to Technology and the Attraction of Foreign Investment12 2.4.4. Contribution to Labor Force12

2.5. The Major Players in the Market12
3. 2001 AND 2008 ECONOMIC CRISIS14
3.1. Anaemic catching-up process until the 2001 economic crisis14 3.2. The 2000/2001 crisis19
3.3. The ongoing economic crisis of 200820
3.3.1 The mid-2006 episode21
3.3.2. Significant negative impact in the real economy22
4. 2001 CRISIS AND AUTOMOTIVE INDUSTRY23
4.1. Impacts of 2001 Crisis on Turkish Automotive Industry23 4.1.1. Production Dvelopment Turkish Automotive Industry23
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 Industry28 4.2.1. Market28

4.2.2. Production29
4.2.3. Foreign Trade30
5. CONCLUSION32
REFERENCES33

LIST OF FIGURES

Figure 1: Manufacturing Plants of Turkish Automobile Firms9 Figure 2: Real GDP per capita (United States=100)13
Figure 3: Growth of real GDP per capita14
Figure 4: Real GDP Growth15
Figure 5: Inflation and the exchange rate16
Figure 6: Inflation and interest rate17
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(%)26
Figure 10: Total Production and Automobile Production28
Figure 11: Export/Total production (Including Tractors)29

LIST OF TABLES

Table 1: Automobile Manufacturers in Turkey8
Table 2: Changes in real GDP per capita, 1950-199812
Table 3: Production of Turkish Automotive Industry in Product Categories21 Table 4: Vehicles and Spare Parts Imports (USD)23
Table 5: Total production and exports in Turkish automotive industry(Units)25 Table 6: Capacity utilization rates (%)28

1. INTRODUCTION

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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