Mercedes-Benz Türk Head Warns ‘Made in Europe’ Rules Could Harm…
Süer Sülün, head of Mercedes-Benz Türk, has warned that new “Made in Europe” regulations could negatively affect Turkey’s automotive sector. Sülün stated that if these regulations lead to restrictions in European markets, they would pose a significant challenge to one of Turkey’s most crucial economic drivers.
The proposed “Made in Europe” regulations aim to promote production within the European Union. However, these measures risk creating barriers for goods manufactured outside the EU, including those from Turkey. As a long-established production hub for many European car brands, Turkey’s automotive industry could face reduced demand and fewer export opportunities.
The automotive sector is a cornerstone of the Turkish economy, being a major exporter, a significant contributor to the gross national product, and a vital source of employment. Thousands of jobs, both directly in car manufacturing and indirectly in the supplier industry, depend on the sector’s health and its access to international markets.
Should European restrictions be implemented, Turkey could see reduced production volumes at its factories, impacting investment decisions and future growth. A decline in exports would directly affect Turkey' s trade balance and its ability to generate foreign currency. Furthermore, weakened competitiveness for Turkish-produced cars in Europe might necessitate industry restructuring and adaptation, with ripple effects across the entire economic value chain, potentially leading to job market uncertainty in key manufacturing regions.
Given the European Union is one of Turkey’s largest trading partners, any changes in its trade policy will have a direct and noticeable effect on the Turkish economy. Sülün’s warning underscores the importance for Turkey to closely monitor the development of “Made in Europe” rules and devise strategies to mitigate potential negative outcomes for its vital automotive industry.
Source: Bloomberght
