Foreign capital investments in automotive industry during Tariff Union and influences of these investments on the country's economy

Automative industry is accepted as locomotive of economy becuase of its relation with other industrial branches and other sektors of economy, and has a very important place in world?s economy with its employing and production capacity. It makes demand for main industrial branches like iron-steel, petroleum-chemistry, tire and other branches, and it leads to technological development. It also takes the lead of actual and reliable tax income sectors.Automotive industry is the third big sector following food and textile industries. Today, turkish main automotive sector is directly employing 30-40 thousand person, and indirectly employing half million person. Automotive industry plays key role of country?s economic development, contribution to employment, prosperity, production, national income and creation on large scale economic dynamic and lead in Turkish industry and progress.According to customs unity, there are 5 big foreign invested factories have activities in Turkey. From them, Fiat started its production in 1968, and so do others; Renault in 1969, Toyota in 1994, Honda and Hyundai in 1997. Today, these factories are employing about 19060 person and make important contributions to country?s development. These companies are making production under licences, and have foreign invested partnership with other biggest companies in the world.This study is composed of three section. In the first section, have been explained automotive industrial growth in the world and Turkey, import substitution for industrialization and external gap for industrialization in Turkey. In the second section, have been discussed the conditions during crisis and main problems of the industry. In the third section, have been discussed production, sales and export, competitive position, strong and weaks sides, opportunities and threats of the automotive industry