UPDATE 1-Turkey's carmaker Tofas lays off 657 workers, 241 leave
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ANKARA Jan 7 (Reuters) - Turkish auto maker Tofas (TOASO.IS), a joint venture of Italy's Fiat (FIA.MI) and local group Koc, said on Wednesday it had laid off 657 workers amid poor demand for cars.
In a statement to the Istanbul Stock Exchange, Tofas said another 241 workers had taken voluntary leave. Last month, Tofas announced it would halt production between Dec. 27-Jan. 12.
The Turkish automotive industry has grown from modest beginnings to become a driving force for Turkish exports in recent years, supported by foreign manufacturers who have launched production in northwest Turkey.
Turkish vehicle maker Ford Otosan (FROTO.IS), a joint venture between Koc Holding (KCHOL.IS) and struggling U.S. carmaker Ford (F.N), also said last month it was halting production at two factories.
Oyak Renault, a joint venture of Renault (RENA.PA) and Turkey's Oyak, has announced plans to gradually halt car production and resume output in stages. Exports of vehicles and components are key to the economy and were worth $21.26 billion in 2007. Turkey's vehicle exports mainly cater to the European Union. Toyota (7203.T), Renault (RENA.PA), Ford (F.N) and Hyundai (005380.KS) models are also among those exports.
Turkish markets have been hit by the global financial crisis and a domestic slowdown.
(Editing by David Cowell)
((ibon.villelabeitia@reuters.com; Telephone: ++90 312 292 7022; Reuters Messaging: ibon.villelabeitia.reuters.com@reuters.net)) Keywords: AUTOS TURKEY/LAYOFFS
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