Turkish Car Maker Tofas Says Has Resumed Production After Strike

By Yeliz Candemir

ISTANBUL--Tofas Turk Otomobil Fabrikasi AS (TOASO.IS), manufacturer of Fiat, Citroën, Peugeot, Opel and Vauxhall vehicles, said Friday it has resumed production after a suspension began at the start of the week due to a labor strike.

"In accordance with the risk management policies of our corporation and as necessary conditions are occurred, production activities have started as of 22.05.2015. Our company also has no problem or difficulty in procurement process from suppliers," said Tofas in a statement to the stock exchange.

Tofas' statement came shortly after Ford Otomotiv Sanayi AS, the Turkish unit of Ford Motor Co. (F) in partnership with Koc Holding AS (KCHOL), said Friday it has restarted manufacturing operations at its two plants after a labor protest.

The protests at the plants in Bursa, south of Istanbul, began at Renault SA's biggest plant outside Western Europe when workers on the first shift Friday downed tools and demanded higher wages. On Monday, Tofas said it was also affected by labor action and decided to stop production until the dispute was resolved.

While Turkey's car makers Ford Otosan and Tofas have restarted production, tractor manufacturer Turk Traktor ve Ziraat Makineleri AS, a joint venture of Koc Holding and CNH Global NV, said late Thursday it will halt production at its two plants due to a labor strike.

"Labor actions that have occurred in a couple of companies operating in the automotive sector, has been effective on some workers in our Ankara and Erenler Factories. Therefore, in accordance with the risk management policies of our corporation, to ensure the continuity of effective and healthy manufacturing activities of the factory and as a precautionary measure, company management has decided to discontinue the production in Ankara and Erenler Factories until dissolution," Turk Traktor said in a statement to the stock exchange.

At 0745 GMT, Tofas shares were down 0.3% at TRY18.25, Ford Otosan shares were trading 0.14% higher at TRY36.10, while Turk Traktor shares were up 0.2% at TRY76.45 amid a 0.5% drop in BIST-100 main stock index.

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