M. Meryem KIROĞLU

“Global Production Networks” in Automotive Industry: The Case of Turkey

2010

(Supervisor: Nesrin Sungur)

ABSTRACT

This thesis explores the structure and dynamics of global production networks in automotive industry, defines the role of Turkish economy in this chain, and finds out the integration form of the Turkish automotive industry to this international production chain. Therefore, the integration form of Turkey into the capitalist world economy has been discussed in the context of automotive industry.

As of early 2000, the integration form of Turkish automotive industry to the global chain has changed. After 1997 Asian crisis, the multinational companies in automotive industry went through a restructuring process, export-oriented production started in Turkey when Customs Union exemptions were abolished after 2001 crisis, and there have been changes in the structure of partnerships and produced vehicle types of international automotive firms. With Global Sourcing system, there have also been changes in assembler-supplier relations, and foreign partnerships have increased. As purchasing parts from global suppliers increased, import of parts also increased. In this structure, Turkey is integrated to global production networks mostly by manufacturing light commercial vehicles and busses. Although the production of more complex parts has started in parts sector, and some firms have upgraded, mostly labor intensive parts are produced.