Koc Holding and Stellantis N.V. announced that they aim to further expand and enlarge their existing Tofas joint ventures in order to efficiently provide best-in-class products and services to customers and business partners, and to increase the operational potential in Turkiye.
Koc Holding and Stellantis N.V. announced that they aim to further expand and enlarge their existing Tofas joint ventures in order to efficiently provide best-in-class products and services to customers and business partners, and to increase the operational potential in Turkiye.
Tofas is purchasing the entire capital of Stellantis Turkiye distribution company Stellantis Automotive Marketing Inc. As a result, all Stellantis brands offered for distribution in Turkiye – Alfa Romeo, Fiat, Citroën, DS Automobiles, Jeep®, Maserati, Opel and Peugeot – will be distributed by Tofas.
Gathering all activities in Turkiye under a single roof with the support of two powerful shareholders allows unprecedented synergies in worldwide commercial activities, production and R&D, it will also pave the way for offering wider and more efficient products and services to Turkish consumers. New business opportunities are also on the horizon in order to further the potential of Tofas.
Koc Holding CEO Levent Cakiroglu said, “We continue to heal the wounds of the earthquake disaster we experienced on February 6, and we continue to do our part with determination. We believe that the investments to be made in our country are of great importance in overcoming this difficult period. This strategic investment carries our company Tofas to a much more important point in the automotive industry with its production volume, export performance and R&D competencies. Being the leader in the Turkish automotive industry, Tofas is expanding its targets and strengthening its claim with this new investment. This promising agreement, which took place during such a difficult period, once again confirms the belief of our community and partner in our country. We will continue to serve to increase the competitiveness of our country in the automotive industry with the added value that will emerge.”
“Turkiye plays a critical role in our long-term strategic plan, Dare Forward 2030, as we strive to reach a leading market share in the Middle East and Africa,” said Carlos Tavares, CEO of Stellantis. “Deepening our partnership with Koc will create synergy, increase value and expand the market potential for Stellantis brands in all segments. Our joint venture with Tofas, one of Turkiye’s leading industrial establishments, is one of our important production and R&D centers. I would like to express my sincere gratitude to the teams working on this agreement as it will extend our leadership role beyond our 50-year history in a country that has shown the world its capacity to rebuild a sustainable future with hope and resilience in the current painful process Turkiye is facing.”
The agreement also outlines:
- Stellantis will allocate the production of the “K0” model to Tofas, in both medium-size light commercial vehicle and passenger car versions, planned for 5 brands with the aim of starting production from the beginning of 2025.
- The current Doblo production is planned to continue until the production lines of the “K0” model start in July 2023.
- The current Fiat Egea/Tipo project has been extended until the end of 2025.
The transaction, which will be subject to the necessary regulatory approvals, including the approval of the relevant competition authorities, is expected to be completed in the second half of 2023.
Source: Egirisim / Prepared by Irem Yildiz