Ford Otosan slashes 2014 sales forecasts
Ford Otosan cut its total market expectation to 633,000 from 715,000.Turkey-based automaker Ford Otosan has trimmed its retail sales and domestic market expectations for 2014, citing market weaknesses, but raised its export forecasts slightly.
The carmaker, which is a partnership between Turkey’s Koç Holding and U.S. Ford Motors, has cut its total market expectation to 633,000 from 715,000, according to an investor presentation released by the company Feb 19.
Last year, the market that included heavy vehicles amounted to a total of 885,000 units.
The upsurge in the value of the euro – the main determinant of vehicle prices, rises in loan interests, vehicle loan limitations introduced on vehicle loans, as well as an unexpected hike on special consumption taxes collected by vehicles – is expected to cripple Turkey’s domestic auto market in 2014.
Despite cutting its sales forecast from 100,000 to 83,000, Ford Otosan did not revise its production prediction, as it had already said the output was expected to drop 15.7 percent to 237,000.
The exports forecast of the firm, meanwhile, has been elevated from 192,000 to 195,000.
Since the automotive industry exports are heavily dependent on light commercial vehicles, Ford Otosan’s production is under pressure from the continuing weakness in its main export market, Europe, and increasing controls on certificates in the domestic market.