Crisis in the automobile industry in 2019 According to the CAR Institute, the Automotive Research Institute at Duisburg University in Essen and various studies, the year of 2019 is the year of a deep crisis that can overshadow the 2019 crisis. Many automobile monopolies have announced plans to lay off tens of thousands of workers and administrative workers in the coming years. Prof. Ferdinand Dudenhöffer, one of Germany’s leading automotive experts, said that 12 of the 15 most important automotive markets in the world have reduced car sales. He also mentioned that car sales fell by 58 percent in Argentina and 47 percent in Turkey and this development would continue n other important car markets. The Turkish automotive sector, which accounts for 1,5 percent of global automotive production, is hit by domestic economic misery and adverse external factors. The automotive industry affects the development of other industries, in particular, iron and steel, software, fuel, energy, textiles and electronics. It is also associated with many subsectors of services such as distribution, insurance, retail, car rental, maintenance, and repair. Other segments of the economy may also slow down. In the case of Turkey, exchange rates are a major factor affecting automotive production and imports. Exchange rate stability contributes to a steady increase in production and demand for imported vehicles. Unfortunately, the turbulence in foreign capital inflows and rising exchange rates have made the sector volatile in recent years. According to the latest figures, sales for the first five months of this year decreased by 50 percent over the same period in 2018. Light commercial vehicle sales declined by 62,1 percent, representing 5,890 vehicles. A similar decrease is also recorded for exports. According to the Uludag Exporters Union in Bursa, exports in the first five months of the year reached $ 11.7 billion, down 7 percent from the same period last year. One of the weakest aspects of the Turkish automotive industry stems from its constant dependence on imports. Low exchange rates only increased the attractiveness of imported inputs a few years ago and deepened the sector’s dependence on foreign resources. However, when the Turkish lira fell and the hard currency was more expensive, it led to the sharp increase in cargo, leading to the inevitable rise in prices and a reduction in domestic demand. There are more other disadvantages. It may be the local industries are lagging behind in engine and powertrain engineering and relying on foreign resources again. Moreover, the domestic automobile market is burdened with hefty taxes. In addition to the national tax burden, frequent changes to tax regulations are another shortcoming that creates uncertainty.