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Monthly automotive aftermarket magazine

May 2019


Monthly automotive aftermarket magazine

GROUP CHAIRMAN

H. FERRUH ISIK

PUBLISHER:

İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Genel Müdür

Managing Editor

Mehmet Söztutan

mehmet.soztutan@img.com.tr

Responsible Editor

Yusuf Okçu

yusuf.okcu@img.com.tr

Mehmet Soztutan, Editor-in-Chief

mehmet.soztutan@img.com.tr

Editor

Ayça Sarıoğlu

ayca.sarioglu@img.com.tr

Advertising Manager

Adem Saçın

adem.sacin@img.com.tr

Ahmet D. Gölbaşı

aderya@gmail.com

Foreign Relations Manager

Yusuf Okcu

yusuf.okcu@img.com.tr

The shift of the focus

for global markets

Following the shift of the focus on customers, markets, products and competition

from the local level to the global level, Turkish automotive manufacturers and

suppliers position themselves globally rather than locally.

In addition, the consumer satisfaction standards based on domestic market

demands have now become a quality standard satisfying customers worldwide.

The autoparts industry of Turkey has developed rapidly in line with the automotive

industry. The autoparts industry with its large capacity, wide variety of production and

high standards, supports automotive industry production and the vehicles in Turkey, and

also has a remarkable potential for additional exports.

Whereas previous manufacturing activity focused on domestic markets only, production

now extends to export markets. As a result of this structural change, the competitiveness

at the domestic level is now replaced with competitiveness on a global scale, both in

terms manufacturers and suppliers.

This transformation in the sector urges automotive suppliers to improve their existing

structures in line with the demands of global auto manufacturers. These improvements

relate to a need to build advanced technological skills, infrastructure, research and

development means; capable of effective and successful technical cooperation; skilled

in unique product development; equipped with the ability to obtain shares in global

projects as well as to have high brand competitiveness.

We think that technology and competitive power will always be the two keys for the

survival of the automotive industry. Permanent change is the rule of the game in the

automotive industry as usual.

This month, we participate in International SIA 2019 Motor Show, Kiev, Ukraine; to convey

the message of Turkish automotive and autoparts exporters.

Our publications remain at the service of those business people seeking to increase their

share in the increasingly competitive automotive markets.

We wish them and their trading partners a fruitful and lucrative business.

Consultant Editor

Leniiara Agliullina

Correspondent

İsmail Çakır

ismail.cakir@img.com.tr

Graphics & Printing Manager

Tayfun Aydın

tayfun.aydin@img.com.tr

Design & Graphics

sami.aktas@img.com.tr

Chief Accountant

Zekai Turasan

zturasan@img.com.tr

Finance Manager

Mustafa Aktas

mustafa.aktas@img.com.tr

Subsciption

İsmail Özçelik

ismail.ozcelik@img.com.tr

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Tel: (90.212) 604 51 00

Fax: (90.212) 604 51 35

www.img.com.tr turkey@ihlas.net.tr

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Tel: (90.332)238 10 71 Fax: (90.332)238 01 74

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Please mention

Automotive Exports

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Rental firm to place order for ‘Made in Turkey’ vehicles

Turkey’s first indigenous car

project has already started to

attract the interest of car rental

companies. Zeplin Car, one of

the major players in this field with a

fleet of 18,200 vehicles, has announced

that it is ready to place an order for

2,000 vehicles.

Works on the domestic car, which

will hit the roads in 2021, continue

at full speed. The Industry and

Technology Ministry is said to have

been enjoying an influx of orders

placed by individuals and companies.

In November 2017, the Turkish public

saw the launch of a groundbreaking

initiative to manufacture Turkey’s

first domestic automobile. The project

has brought together the country’s

largest manufacturers and companies

in a consortium that includes Kıraça,

Anadolu Group, Turkcell, Zorlu and

BMC.

During the announcement, President

Recep Tayyip Erdoğan said he will buy

the first car. According to reports, over

30,000 orders have so far been placed

by various individuals and companies.

Zeplin Car Chairman Hakan Sevim

said the daily car rental industry has

brought an innovative solution for

companies and individuals. “With the

spread of electric cars in particular,

the industry will grow even further.

We want to fill this opportunity with

domestic electric vehicles. For this

reason, we have placed an order for

2,000 vehicles. However, it is also

important that the vehicle has a range

of at least 400 kilometers.”

Pointing out that they deliver some

3,000 vehicles to consumers on a

daily basis, Sevim said the economy of

“sharing” is on the rise and that this

market will grow even further with the

increase of electric cars.

“Now, without the need to buy,

everyone can get the vehicle they

want at any time. Turkey’s domestic

automobile project is therefore of

great importance. An electric car with

a range of 400 kilometers will ensure

significant savings for both companies

and individuals. We will buy 2,000

vehicles once the domestic automobile

is ready,” he added.

He added that they have started making

future plans for daily car rentals in line

with the electric car infrastructure. “In

the future, people will go to electric car

parks located within walking distance

and instead of buying cars they will

take the charged cars and go wherever

they want. Therefore, we attach great

importance to the domestic electric car

project,” he said.

Sevim said some 9,000 companies

are registered with Zeplin Car.

“We have developed the corporate

membership system in Turkey for

the first time. Under this project, we

open current accounts for companies

and provide cars to their staff in 81

provinces of Turkey. The employees

or the managers of the company with

corporate membership can take the

car as soon as they get off the plane

in any cities they want, in line with the

corporate agreement.

April 2019 8


Honda to shut Turkish auto plant by 2021

Honda Turkey Inc. has decided

to terminate its automobile

manufacturing operations in

Turkey in 2021 following the

completion of the existing production

of the Civic Sedan model, the company

said in a statement released.

In a written statement, Honda

Turkey has announced its decision to

discontinue production at the Turkeybased

factory.

The statement revealed that the

decision was made because of

developments in the electrification

field in the global automotive industry

and the necessity of ensuring the

appropriate production capacity based

on these developments.

“Having successfully maintained its

automobile production activities in

Turkey for 22 years, Honda Turkey is

proud to have reached all of its goals

in this period. Honda’s impressive

performance in the last few years is

the most important evidence of the

company’s great confidence in the

Turkish market. Therefore, Honda

Turkey will continue to offer sales and

after-sales operations beyond 2021 with

high quality services that it offers to its

customers. In this respect, automobile

operations consisting of the import and

distribution of vehicles in Turkey will

continue without interruption. Honda

Motorcycle operations will not be

affected by this decision,” the official

statement read.

Honda Turkey Chairman Takuya

Tsumura underlined in the statement

that they are aware of the need to

spearhead the rapidly changing

market dynamics and technological

developments, adding, “This situation

inevitably affects our automobile

production operations in Turkey.”

Tsumura also stated that they will

provide all kinds of support, including

re-employment, to employees affected

by the decision. Currently, the company

employs approximately 1,100 peopl

May 2019

10


Tofaş to invest $225M by 2020 for Egea facelift

One of the leading automotive

companies in Turkey, Tofaş,

a joint venture of Turkey’s

Koç Holding and Italy’s Fiat

Chrysler, has decided to start the

facelift investment of the Egea/Tipo car

family produced at the Tofaş’s plant

located in the northwestern province of

Bursa.

In a statement to the Public Disclosure

Platform (KAP), Tofaş said it is foreseen

to invest approximately $225 million by

the end of 2020.

“With the material disclosures dated

10/25/2013 and 11/6/2014, the duration

of the publicly disclosed project has

been extended until the end of 2024,”

the company said.

Within the scope of the first investment

plan, the statement read, 1.3 million

units of production targeted in the

2015-2023 period have been realized

as approximately 530,000 units up to

now and with the contribution of the

new investment, a total of 1.45 million

pieces of production, 70 percent of

which is for export markets, is targeted

during the project period of 2015-2024.

“In this context, it is foreseen to invest

approximately $225 million by the

end of 2020 and it is planned to start

production of new vehicles in the last

quarter of 2020,” Tofaş said.

In a statement, Tofaş CEO Cengiz

Eroldu said the Fiat Egea has been the

most preferable automobile in Turkey

for the last three years, indicating that

Fiat Egea, which was chosen “Best-Buy

Car Of The Year In Europe” at AutoBest

2016, is also maintaining its market

success in the Europe, Middle East and

Africa region.

“The Egea model will continue

providing value added to our country’s

economy with the export volume it

produces,” Eroldu said.

In 2015 Tofaş introduced a sedan body

vehicle as the first member of the Egea

family, the company’s new passenger

car project. The model also went on

sale in other countries’ markets as

of December of the same year. With

the completion of project-related

investments, hatchback and station

wagon versions of the Egea family also

went on sale in 2016. Costing about

$1 billion, the project to develop these

models represents one of the biggest

product investments ever undertaken

in the history of the Turkish automotive

industry.

The sedan member of the Fiat Egea

family sold 34,000 units in 2018 and

holds the title of being “Turkey’s

Best-Selling Automobile” for the last

three years. Founded in 1968, Tofaş is

said to be the only company in Turkey

that manufactures both passenger

cars and light commercial vehicles.

With an annual production capacity of

450,000 vehicles and with nearly 9,000

employees, Tofaş is Turkey’s fourthbiggest

industrial enterprise.

Having had an export ratio of 80 percent

in 2018, the company is carrying

exports to around 80 countries. It

exported 243,832 units last year, while

its total production stood at 301,750

units. One of the important strategic

production facilities of Fiat Chrysler

Automobiles around the world, Tofaş

is also one of the biggest research and

development (R&D) centers in Europe.

May 2019 12


Turkey-A global player in autumotive industry

During the 1990’s, as other

international manufacturers like

Toyota, Honda, Hyundai, Isuzu

and Mercedes-Benz

entered the market, Turkey rapidly

became an automotive production base

which not only caters to one-time

developments of the industry but rather

holds long-term development options.

Today, Turkey has a thriving automotive

sector, demonstrating substantial growth

in the past. All players involved, including

local authorities and the government, are

participating in providing conditions to

increase output in the future. Some of the

facts are:

-High level of integration into the global

automotive industry

-14th major automotive producer in

theWorld,with 78% average export rate

-Vehicles of Turkish origin hold the

leading position among the vehicles

coming from outside of EU

-Production, export, and engineering hub

of global brands for international markets

-Quality products with high export rates

-Hundreds of Tier 1 companies working

directly with OEMs

-Center of excellence in automotive

engineering and R&D,in which new

technologies are developed

Strong international presence

-Giants of global automotive value chain

benefit from Turkey’s location, cost,

andcompetitiveadvantages

-Because of their profitable business

in the country, companies in Turkey

continue to invest in the country’s future

-9 R&D centers support not only the local

operations, but also the operations in

other plants of parent companies.

-Ford Otosan’s R&D department is one of

Ford’s 3 largest global R&D centers

-R&D centerin Bursa is the only center of

Fiat outside of Italy serving the European

market.

-For Courier, Ford’s new light

commercial vehicle, the Yeniköy plant is

the sole production center in the world.

-Toyota’s C-HR Hybrid is produced in

Turkey for World markets

-Daimler R&D is the center of

competence for some parts and carries

global responsibility.

-With more than 40 thousand employees,

automotive OEMs are one of the major

employers in the manufacturing industry.

May 2019 14


www.ge-pas.com

info@ge-pas.com

İSTANBUL OTOMOTİV SAN. TİC. LTD. ŞTİ.

Başvekil Cad. asirali İsmail Sokak No: 9/C Şehremini/İSTANBUL/TÜRKİYE

Tel: 9 – 9 aks: 9


INEOS Styrolution

exhibited new automotive

solutions at PIAE in

Mannheim/ Germany

• High quality automotive interior and exterior

applications

• New structures with laser grained surfaces

• StyLight® composite: New exhibits and

presentation on latest developments

Frankfurt, Germany - INEOS Styrolution, the global

leader in styrenics, offered a comprehensive overview

of its material lineup and solutions portfolio for

the automotive industry at the PIAE (Plastics in

Automotive Engineering) in Mannheim/ Germany (April

3-4, 2019). Highlights included the award-winning

Luran®S for exterior applications, new structures

with laser structured surfaces and the latest news

on the company’s composite StyLight®, designed for

structural and aesthetic applications.

Luran® S is the material of choice for automotive

exterior applications such as radiator grills and mirror

housings. Dedicated grades of the material were

developed for weather resistance and state-of-theart

UV stabilization. At the Mondial de l’Automobile in

Paris in 2018, Luran S, an ASA (acrylonitrile styrene

acrylate) polymer, was announced winner of the

Automotive Brand Contest in the category “Future,

Mobility & Parts”. Today Luran S grades are more and

more used for unpainted parts at SUV rear spoilers.

INEOS Styrolution also exhibited new structures with

laser grained surfaces developed in collaboration

with Reichle Technologiezentrum GmbH. The

following styrenics grades, typical materials of choice

for automotive interior and exterior applications,

are particularly looked at: Novodur® H701 (ABS),

Novodur® H801 (ABS, Novodur® Ultra 4255 (ABS),

Luran® SC KR2863C (ASA/ PC), Terblend® N NM-

21EF (ABS/ PA) and Luran® HH-120 SPF50 (AMSAN).

New applications of StyLight®, INEOS Styrolution’s

composite material for structural and aesthetic

applications will be presented at the INEOS Styrolution

booth. The material is based on a modified SAN

(styrene acrylonitrile copolymers) matrix and diverse

fiber textile (carbon fabric, glass fabric, or hybrid

carbon/ glass). The latest addition to the StyLight

family of composites includes composites based on a

PP (polypropylene) matrix offering customers for the

first time an aesthetic PP thermoplastic composite

solution.INEOS

May 2019 16


Turkey’s bus, minibus exports record nearly

19 pct rise in Q1

Bus-minibus-midibus exports,

one of the subproduct groups

of the automotive sector, rose

by 18.91 percent in the first

quarter of 2019.

According to the Automotive Industry

Exporters’ Association, the Turkish

automotive sector exported buses,

minibuses, and midibuses to 110

countries in 2018, amounting to $1.8

billion in exports with a 12.57 percent

increase year-on-year.

In the first quarter of 2019, this

automotive group saw an 18.91 percent

increase in exports over the same

period of the previous year, rising from

$420.8 million achieved in the first

quarter of 2018 to $500.4 million in the

same period of this year.

If the sector’s export growth trend

continues as in the first quarter, the

year-end export figure is expected to

exceed $2 billion.

In the first quarter of the year buses,

minibuses and midibuses were sold to

72 countries, with Romania taking the

lead in terms of quantity.

Exports to Romania, which overtook

Germany in this product group, surged

13.5-fold over the same period of the

previous year from $5.58 million to

$80.65 million. This figure amounted

to $75 million of the export increase

Turkey achieved in this product group

in the first quarter.

Exports to Germany, which came

second in exports this quarter fell by

19.73 percent to $69.4 million. Turkey’s

automotive exports to France, on the

other hand, increased by 37 percent

from $38.5 million to $52.9 compared

to the same period of the previous year.

Meanwhile, exports to Italy, Poland, the

U.K., Spain, Bulgaria, Croatia, Belgium,

Hungary, Israel, Norway and Greece

surpassed $10 million each in the

January-March period.

Among these countries, Hungary saw a

7.5-fold increase in exports from $1.5

million to $12.6 million compared to the

previous year.

Exports to Israel, which is among the

leading countries in the export hike,

rose from $2.2 million to $11 million,

while exports to Greece climbed from

$3 million to $10.5 million.

May 2019

18


AutoTechService offers challenging opportunities

AutoTechService is the leading

B2B automotive event in

Ukraine, with over 350

exhibiting accompanies and

35,000 expert visitors every year.

The show is held alongside SIA - Kyiv

International Motor Show, which

enables to increase the number

of visitors and produce a richer

experience. AutoTechService is

specifically tailored to the conditions

of the Ukrainian automarket, and

its popularity among professionals

guarantees a high quality audience and

large attendance at the exhibition. It

provides exhibitors with a highly costeffective

platform to reach their target

audience. In addition, the exhibition

provides you with an opportunity to

learn about automotive industry trends

and novelties.

May April 2019

20


EU plans to put speed limiters, data recorders on cars

The European Union is moving to

require cars and trucks to have

technology that would help keep

drivers from speeding as well

as data recorders that would document

the circumstances of accidents.

Those were among the safety features

included in a provisional agreement

announced by the EU’s executive

commission.

The package would mandate so-called

intelligent speed assistance, which

recognizes speed limits using mapping

systems and help drivers observe them

by restricting engine power. The driver

can override the system by pushing

harder on the gas pedal. But the

onboard data recorder could further

deter speeding by registering the car’s

speed.

“Every year 25,000 people lose

their lives on our roads,” said

Elzbieta Bienkowska, the European

Commissioner responsible for internal

market and industry. “We can and must

act to change this.”

The European Commission, the

executive arm of the 28-country

EU, said that the features would be

required on all vehicles on European

roads from 2022.

The other safety features would include

systems to warn drivers if they seem

drowsy and against distractions such as

smartphone use. Cameras and sensors

would be required to avoid accidents

while backing up and to help keep a car

in a lane. For cars and vans, the deal

requires advanced emergency braking,

which can detect obstacles and push

the brake pedal if the driver does not

responds in time.

And another system would help bus

and truck drivers avoid hitting cyclists

in their so-called blind spots. Although

properly adjusted mirrors should

allow truck drivers to see to the side,

Germany’s transport ministry has

pushed for the measure to reduce

deaths of cyclists and pedestrians.

Much of the technology already exists

and is available on more expensive

cars.

The European Automobile

Manufacturers’ Association welcomed

the EU’s agreement but said vehicle

technology needed to be supplemented

with better road infrastructure and

measures to encourage safer driver

behavior.

“This challenging piece of legislation

will no doubt be instrumental in further

improving road safety - something

all auto makers are fully committed

to,” said ACEA Secretary General Erik

Jonnaert. “At the same time vehicle

technology alone will not be sufficient.

For maximum effect, policy makers

must now push for a fully integrated

approach to road safety; combining

vehicle technology with better road

infrastructure and safer driver

behavior.”

The association warned in December

that intelligent speed assistance should

be introduced only gradually. It said the

technology was hampered by too many

false readings due to out-of-date maps

and poor sign visibility.

The measures announced were agreed

on in negotiations between European

national governments, the commission,

and the European parliament. The

provision political agreement is subject

to formal approval by the European

parliament and EU leaders.

May 2019

24


RENOLIT Promoting 100% Recyclable, Lightweight

Automotive Interior Material Solutions at Automotive

Interiors Expo 2019, Stuttgart

Buriasco – RENOLIT GOR S.p.A., with a

leading global position in the production

of thermoplastic and thermoformable

materials for the automotive market, is

promoting its extensive range of 100%

recyclable, thermoplastic composite

material solutions for vehicle interior

trim parts at AIE (Automotive Interiors

Expo) 2019 (21-23 May), Stuttgart.

The RENOLIT stand (A4085) at AIE will

be showcasing the complete RENOLIT

COMPOSITES range of established

polypropylene based materials. This

includes RENOLIT WOOD-STOCK,

along with a wide variety of other

highly formable sheets, rolls and

rigid cored composite products, all

specially developed for cost effectively

fabricating coated automotive interior

trim parts.

This year there is a special focus on

Parcel shelf made with RENOLIT TECNOGOR.

(Photo: RENOLIT COMPOSITES, PR002)

its latest ‘star product’ innovation,

RENOLIT TECNOGOR. This next

generation, thermoformable sheet

and roll material has already gained

a leading position in the global

automotive interiors market with major

OEM end customers. German, Italian,

French and Japanese car makers

now use RENOLIT TECNOGOR for

a variety of thermoformed, custom

coated, vehicle interior 3D trim parts.

Successful applications include: parcel

shelves, load floors, seat back covers,

dashboard inserts and trunk trims.

RENOLIT TECNOGOR is a safe, clean,

100% recyclable, glass fiber (GF)

reinforced, PP based, lighweight

thermoplastic composite material. It

has been specifically designed to cost

effectively produce automotive interior

trim parts. Tier 1 converters are able

to combine superior part performance

with consistent quality and higher

productivity, while also achieving lower

production costs as it can be 3D shaped

in a ‘glue free’ one-step-process.


Yildirim Ticaret ready for the future with confident steps

light commercial, heavy commercial,

construction machinery.

What are the features that make your

company different from other brands?

Based on Kaizen principles, our

company always develops itself

and adopts innovations through a

series of innovations. We are able to

produce tailor made solutions for our

customers. By reducing the time losses

of our customers, we offer brand new

and fast solutions.

For this reason, these facts make us

different from other companies.

Do you have any investment plans as

Yıldırım Ticaret brand?

Our company has invested in machine

and machine tools so far. Starting in

2019, we will embark on a new factory

construction. As soon as we finish the

factory construction, we will continue

to serve from a better and more

developed place.

To which countries do you export?

The countries we particularly export to

are our neighbors, such as Syria, Iraq,

Iran, including the UK and France. 70%

of the total turnover is for domestic

market and the remaining 30% is for

export markets.

What are the fairs you have

participated in Turkey and abroad?

This year, we have participated in

Automechanika Istanbul. We are not

planning to attend another fair this

year. We want to participate in one of

the fairs organized in Europe next year.

Yıldırım Ticaret, which has been

developing year by year, based

on a series of innovations, is at

the service of the automotive sector by

producing silicone turbo intercooler

hoses. The company is moving forward

with its new factory investment.

“In 1999, Yıldırım Ticaret embarked on

the automotive sector to meet the need

for spare parts for heavy commercial

vehicles. It continues its successful

progress with silicone turbo intercooler

hose manufacturing. In addition to

domestic sales, it also makes a great

contribution to the national economy

by exporting its products.” Mustafa

Yildirim of Yıldırım Ticaret said.

Can you tell us about the

establishment of Yıldırım Ticaret?

We entered the sector in 1999 with the

retail trade of heavy commercial vehicle

spare parts. In a short period of time,

we have added to our service the sale of

mineral oil for the automotive industry.

In 2010, we started manufacturing

silicone intercooler turbo hose. We

are currently serving the automotive

industry, with special reference tos

pare parts of construction machinery

and special vehicles.

Which machines and technologies

do you use in the production of

intercooler hose? Can you tell us about

the variety of your products?

In silicone turbo intercooler hose

manufacturing, we use chemistry

and machinery technologies. Our

products include spare parts for

How do you evaluate the development

of the automotive industry as a

specialist in manufacturing turbo

and intercooler hoses? Are there

any sectoral developments that have

affected you positively or negatively

over the years?

Turbo intercooler hose industry will

record a remarkable performance

in line with the automative industry.

However, with probable the increase of

electric vehicles in the future and the

decrease of the vehicles with internal

combustion engine could exert negative

effects on our sector. Actually, this is a

long-term sectoral problem. The sector

we are in is a dynamically developing

sector for the next 20 years. We are

able to meet the new challenges in an

efficient manner.

May 2019 28


Turkish businessman seeks recall of Range Rover Vogue

SUVs before EU offices

A

Turkish businessman --

winning his case against a

world-famous British carmaker

in March over engine failure --

has taken the lawsuit to the EU offices,

an Istanbul based NGO said.

International Diplomats Association

said after winning his multi-year court

battle Engin Yakut, the owner of the

faulty Range Rover Vogue, claimed in

his petition that thousands of Range

Rover Vogue models in Turkey have

been suffering from the same engine

problem.

The association said Yakut took his

case to the European Court of Justice,

European Commission, EU Parliament,

and the bloc’s competition authority.

“Land Rover Company will lose a great

deal from its reputation if they reject

to accept their fault. The company CEO

should make a public announcement

about the issue and [2013 model] Range

Rover Vogue SUVs should be called

back,” Yakut said, adding the vehicles

with similar engine failures pose a

danger for traffic safety.

Yakut urged European prosecutors to

launch an investigation against Land

Rover Company as there are currently

around 8,600 vehicles suffering from

the same engine and transmission

failures.

Yakut bought a luxury Land Rover sport

utility vehicle (SUV), Range Rover Vogue

for 170,000 in 2013 but soon it broke

down.

Mechanics at Borusan Oto, the

vehicle’s distributor in Turkey, issued

a report blaming the breakdown on a

manufacturing defect.

After three attempts by Yakut to

get Land Rover to replace his car

went unanswered, Yakut filed suit

in Istanbul’s 1st Consumer Court,

demanding the car be pulled from the

market.

After seeing evidence of the

manufacturing defect, a Turkish court

ordered the company to reimburse

Yakut for his purchase, with interest but

did not order the Vogue model pulled

from the market

May 2019

30


Mercedes boosts Aksaray’s economy by TL 1.7B in 33 years

German automotive firm

Mercedes has carried out

a socio-economic survey

that measured the concrete

contributions its truck factory in central

Turkey’s Aksaray has made since its

establishment in 1986.

Mercedes, operating in Turkey for

over 52 years now, employed two

independent research companies to

carry out the survey.

The findings showed that the factory,

built with a foreign direct investment

of 495 million euros ($551.81), has

produced an economic value of

over TL 1.7 billion in the city with its

production, employment, research

and development (R&D) activities and

exports over 33 years.

Some 2,000 people from the different

demographic backgrounds, including

local people, tradesmen, local

authorities, employees and their

families who joined the survey said that

Mercedes-Benz Türk is a symbol of

Aksaray, adding that the fact that the

factory is located in the city is a source

of pride for them.

Mercedes-Benz Türk CEO Süer Sülün

expressed their pride regarding the

company’s impact in transforming the

region. “Over time, we have seen that

Aksaray, one of the most beautiful

examples of local development, has

become one of the few Mercedes-

Benz cities in the world. With our

production, exports, R&D activities,

employment we have produced, and

investment activities, we provide added

value to both Aksaray and the national

economy,” Sülün said.

He added that Mercedes-Benz Türk

constitutes some 20 percent of

Aksaray’s economy thanks to the

indirect and stimulated impacts of

the truck factory on its surroundings.

Aksaray’s total gross domestic product

(GDP) in 2017 was TL 10.64 billion,

according to Turkish Statistical Institute

(TurkStat) data. “When we laid the

foundations of the factory 33 years ago,

we predicted that this investment would

not be limited to providing employment

alone, but the employment provided

would have a direct impact on the

quality of life. These figures prove that

we have turned out to be right in our

predictions,” he said

Nissan Turkey new regional management center

Japanese automotive giant,

Nissan has made its Turkey

country office the management

center for eight North African

countries and the Commonwealth of

Independent States (CIS), the company

confirmed in a statement.

The decision will expand the sphere of

responsibility for Sinan Özkök, Nissan

Turkey’s managing director. He has

now been appointed as the Managing

Director for North Africa and CIS

countries.

As of April 1, Özkök will handle Nissan

operations in Morocco, Tunisia,

Sudan, Azerbaijan, Armenia, Georgia,

Uzbekistan and Turkmenistan.

According to the statement, the

company’s activities in these countries

were previously managed within the

Middle East region.

Nissan Turkey, which started to

operate under the global umbrella

of the brand in 2015, is continuously

increasing its market share, it has

retained its leading position in the

SUV market with a 19 percent share.

Nissan Turkey has also set an example

to other countries with its innovative

practices.

Following the decision, Özkök said:

“North Africa and the Commonwealth

of Independent States are high

potential markets for our brand.

We are happy to contribute to the

development of our brand by moving

our knowledge and experience to a

vast region, spanning from Casablanca

to Tashkent. In this period where we

are experiencing shrinkage in the

domestic market, this decision will be

a source of motivation for our team

working in Turkey and produce new

excitement.”

Having started his career in the

automotive industry in 1993, Özkök

worked on logistics and product

planning. Since 2001, he worked on

strategic planning in Renault France

and served as Paris regional manager.

After returning to Turkey in 2007,

Özkök served in many high-level

positions such as dealer development,

branch management and sales and

network directorship.

He was appointed Nissan Turkey

Managing Director in October 2015 and

managed to make the brand the leader

in SUV segments and one of the top 10

automotive brands in the country.

May 2019 32


Automotive exports reach $2.6 billion in April

The Uludağ Automotive Industry

Exporters’ Association (OİB)

announced that the Turkish

automotive industry achieved

the second highest April performance

in its history.

According to an OİB written statement,

Turkish automotive industry exports

reached $2.6 billion with a 9.8 percent

decline in April. Despite the fall, the

industry achieved the second highest

April performance in its history.

The automotive industry, which still

ranks first in Turkey’s exports with a 17

percent share, reached an average of

$2.6 billion in exports in the first four

months of the year. Industry exports

were $10.3 billion, a 6.8 percent fall in

the January-April period.

As far as product groups, the export of

vehicles, with the exception of buses,

minibuses and midi-buses, declined

in April, while exports to EU countries,

which have a 76 percent share of

Turkish automotive exports, dropped 13

percent.

Considering the April performance

in terms of product groups, export of

private cars, which have a 37 percent

share, plummeted by 23 percent to

$961 million.

Meanwhile, supply industry exports

decreased by 3 percent to $926 million,

the second-largest share of automotive

exports.

Exports of motor vehicles for

transportation of goods decreased 1

percent to $469 million, while exports

of buses, minibuses and midi-buses

increased 14 percent to $170 million.

Exports to France, the largest market

in passenger cars, dropped 36 percent,

followed by Italy at 41 percent, Spain

at 34 percent, Germany at 33 percent,

the U.K. at 17 percent, Belgium at 36

percent and Sweden by 22 percent.

On the other hand, exports to Israel

rose 15 percent and to Slovenia and

Hungary by 19 percent each. Exports of

passenger cars, to the U.S. soared by

43.9 percent.

Meanwhile, exports to Germany, the

largest market for the automotive

supply industry, shrank by 11 percent

and to France, the second-largest

market, by 1 percent and to Romania,

plunging by 23 percent.

Moreover, exports to the U.K., the

U.S. and Algeria skyrocketed by 17

percent, 24 percent and 58 percent,

respectively. Export of motor vehicles

for transportation of goods to the

U.K., Slovenia, and Spain went up

by 32 percent, 72 percent and 30

percent, respectively, while exports

to Italy fell by 41 percent, Belgium

by 13 percent, the Netherlands by 18

percent, Germany by 26 percent and

Sweden by 59 percent. In April, exports

to Germany, the largest market for the

Turkish automotive industry, stood at

$368 million, an 18 percent decline, and

to France at $268 million, a 23 percent

fall. Exports to Italy totalled $237

million with a 28 percent fall.While

exports to Spain and the Netherlands,

two important markets, declined by 24

percent each and to the Netherlands by

22 percent, exports to the U.K., Slovenia

and the U.S. were up by 14 percent, 39

percent and 57 percent, respectively.

The reason for the fall in the German

market was the 33 percent fall in

automobile exports and 11 percent fall

in supply industry exports. Also, the

reason for the shrinkage in exports to

France and Italy was the 36 percent

and 41 percent fall, respectively, in

passenger car exports.

Exports to EU countries, which are

the largest market as far as country

groups, dropped 13 percent to nearly

$2 billion. Automotive exports to

African countries surged by 30 percent

and North American free trade zone

countries by 14 percent.

Exports to the EU countries stood at

$8 billion in the January-April period,

while exports to North American

free trade zone and Middle Eastern

countries shrank by 19 percent and 4

percent, respectively.

Automotive exports to African countries

increased by 10 percent and Far

Eastern countries by 12 percent.

May 2019

34


Year’s Record Came from Automotive Industry!

* Automotive Industry has exceeded the targets with “Automechanika Istanbul”

which is the World’s 3rd largest fair!

* Automechanika Istanbul, the leading international automotive aftermarket fair

of Turkey was successfully held, 4-7 April 2019.

The world’s 3rd largest fair

of the automotive industry,

Automechanika Istanbul reached

a significant success at Istanbul!

As the leading automotive trade brand

in the region Automechanika Istanbul

once again became the industry’s

ultimate meeting point. The fair

brought together 48,737 industrial

trade visitors from 130 countries with

1400 local and international exhibitors

from 38 countries in Istanbul. This

year, the fair exceeded its own record

once again with increasing the visiting

rate by 6%. Stating that Turkish

automotive manufacturers targeted

32 Billion Dollars’ worth of exports in

2019, Hannover Fairs Turkey Fuarcılık

General Manager Alexander Kühnel

and Messe Frankfurt Istanbul’s

Managing Director Tayfun Yardım

stated that, “Within the scope of the

trade fair which we organised in line

with the vision of making a greater

contribution to exports, our exhibitors

signed important agreements. These

agreements will have positive impacts

on the industry’s targets. We will

be seeing these positive impacts

on Turkish economy more clearly

particularly beginning from the second

half of the year”.

The international trade fair

“Automechanika Istanbul” which was

held between 4 - 7 April in Istanbul

brought industrial professionals

May 2019 36


together with their target markets.

At the trade fair which was organised

for the 13th time with the cooperation

of Deutsche Messe’s Turkey office,

Hannover Fairs Turkey and Messe

Frankfurt Istanbul, professional

visitors had the convenience of

finding everything they need about the

automotive industry under a single roof.

Pointing out to the importance of

Turkey as a trade centre for the

international automotive market, and

the need to utilise this potential through

an increase in exports, Hannover Fairs

Turkey Fuarcılık General Manager

Alexander Kühnel commented;

“The automotive manufacturing

industry is among Turkey’s most

important industrial manufacturing

areas. Automechanika Istanbul offers a

very important opportunity in order for

Turkey to show the world its strength

in this field, and its future potential.

With Automechanika Istanbul, which

we organised with the vision of making

a greater contribution to the exports in

the industry, we achieved huge success

also in 2019. During a four-day period,

our exhibitors made magnificent

use of this opportunity and made

important deals. The positive feedback

we received from our exhibitors, and

their satisfaction, motivated us to

immediately start the preparations for

next year’s trade fair”.

Emphasising that the shrinkage

experienced during the first quarter

was temporary, and that the industry

will gain momentum with new business

deals to be realised in the remaining

part of the year, Kühnel and Yardım

continued his words as follows:

“The vehicle sales experienced in

European Union countries, which

constitute Turkey’s largest export

market, caused a decline in new

orders, which resulted in a temporary

shrinkage in manufacturing.

Automechanika Istanbul witnessed

successful conclusion of business deals

that will change this course of events

in Turkey’s favour. Automotive industry

is very important for Turkish economy

as it covers a wide range of goods.

We attach great importance to the

development of companies that focus

on the manufacturing of this category

of goods which ranges from passenger

vehicles to the supply industry, motor

vehicles for cargo carriage, and buses.

We are delighted to have organised

such a fruitful B2B trade fair in Turkey,

which is a very important country for

Deutsche Messe’s activities”.

Stating that Automechanika Istanbul

is an important meeting point for the

sector at an international scale, Messe

Frankfurt Istanbul Managing Director

Tayfun Yardım also pointed out that the

fair is not only focused on commerce,

but is also an information-sharing

platform. Mr. Yardım shared his

thoughts on the fair with the following

words:

“Under the roof of Automechanika

Brand which is the most successful

trade fair brand in the world,

Automechanika Istanbul as the 3rd

biggest automotive industry fair in

the world, once again closed its doors

with record-breaking numbers. During

4 days, 48,737 professional visitors

from 130 countries met with 1400

exhibitors in 13 halls. At the fair where

all the components of the industry

meet professionals from all over the

world had the opportunity to see the

latest trends, technologies and new

products in the automotive industry.

As in previous years, international

participation and visit proved the

importance of the fair in the world.”

Female Employees In the Industry Was

the Focal Point of the Event!

Attracting attention with its

international top-quality contents

and conferences that add colour to

the industry every year, this year

Automechanika Academy discussed

the role of women within the industry.

Leading woman executives of the

Turkish automotive industry will speak

at the “Women in the Automotive

Industry; “Women Talk” Panel

organised with the cooperation of

KAGİDER.

Automechanika Academy, which

attracts attention with its international

content and conferences, discussed the

role of women in the sector for the first

time this year at “Women Talk” Panel.

Female executives in the automotive

industry from Mercedes-Benz Türk,

TOBFED Women’s Commission, Faydası

Çok Multi Foundation and Turkish

Tractor were the panelists who has

attended the Women in the Automotive

Industry Panel; “Women Talk”.

Within the scope of the Buyers’

Delegation Program organized by

the Automotive Industry Exporters’

Association under the coordination of

the Ministry of Trade, 37 purchasing

delegations from 8 countries, mainly in

Europe, Middle East and Africa region,

were hosted at the fair.

Automechanika Istanbul is supported

by Ministry of Trade.

14th International “Automechanika

Istanbul” will be held between 2 – 5

April 2020!

May 2019 40


ROTA displays its new product line at Bauma

ROTA displayed its new

product group such as the

steering equipment for

construction machinery

and the hydraulic cylinders at

Bauma Fair.

Bauma, world’s largest

construction machinery fair, was

held in Munich, Germany between

08-14 April 2019. During the

Bauma Fair, 3,700 exhibitors from

63 countries met 620,000 visitors

from over 200 countries.

ROTA has has been

manufacturing for the OEM /

OES industry and aftermarket.

ROTA, which produces more than

600 OEM reference products

for construction machinery,

has exhibited some of the 25

new products developed for

the construction machinery. In

addition, ROTA, which carries

its quality-oriented production

concept to hydraulic products,

exhibited these products for the

first time.

As known, ROTA manufactures

OEM products such as tie rod end,

ball joint, centre rod, axial joint,

triangular torque rod, torque rod

and repair kit for commercial

vehicles, agricultural tractors,

construction machinery and

special vehicles.

Many business meetings were

held with ROTA for new and

potential customers during the

fair. Zeki Cidik, the Executive

Board Member of NSK Group who

participated in the fair, said: “We

have experienced a successful

trade show to introduce our

brands for the construction

machinery market, thereby

contributing to the export figures

of our company. We also had

the opportunity to introduce our

products and see the potential

of the market for the hydraulic

cylinder products that we will

start to produce. We will continue

to promote our brands all over the

world.”

May 2019 42


Eximbank to provide TL loans for non-SME

firms to boost exports

Türk Eximbank, which provides

loans in local currency to small

and medium-sized enterprises

(SMEs) exporting in Turkish lira,

will from now on grant loans to non-

SME companies as well.

In a statement, Trade Minister Ruhsar

Pekcan said significant efforts have

been made in recent years to improve

trade in local currencies.

She pointed out that the share of the

Turkish lira in exports rose from 4.5

percent in the first two months of 2018

to 4.8 percent in the first two months of

this year.

Pekcan said Türk Eximbank has

continued to provide TL loans to

exporting SMEs with affirmative

interest rates compared to market

figures.

She added that the bank channeled

Turkish lira sources to SMEs in August

2017 and provided additional credit

support of about TL 10 billion to SMEs,

including TL 2.1 billion in 2017 and

TL 7.7 billion in 2018, adding the said

support will continue to increase in

2019.

The trade minister said that Türk

Eximbank’s loan facility in Turkish

lira was planned to be diversified and

increased by taking into consideration

the importance and growing potential of

trade in local currency in the upcoming

period.

On providing loans in the local currency

to non-SME companies, Pekcan said:

“For this purpose, the current Turkish

lira loan program for SMEs exporting in

the local currency will continue.”

She said for non-SME companies, on

the other hand, a previously announced

loan program will be put into operation

as of April 22, 2019.

The loan will have a one-year maturity

period and a six-month interest rate

payment based on the Central Bank of

the Republic of Turkey’s (CBRT) daily

weighted average funding rate.

“We believe this opportunity will

contribute to the development of trade

in local currencies,” said Pekcan.

May 2019

46


Indigenous automobile to add 50B euros to

Turkish economy

The details and financial returns

from the indigenous automobile

project, launched in November

2017 through the efforts of

the Turkish business world, are

being revealed as the project makes

progress. Gürcan Karakaş, the CEO

of Turkey’s Automobile Joint Venture

Group (TOGG), said within the next 15

years the ecosystem to be mobilized

by their project will contribute 50

billion euros ($56.5 billion) to the gross

domestic product (GDP), 7 billion euros

to the current account deficit and add

about 20,000 people to direct or indirect

employment.

In his speech at the “The Future of the

Mobility Ecosystem” panel moderated

by Martaş Otomotiv board member

Cem Baver Özalp at the Uludağ

Economic Summit, TOGG CEO Karakaş

said there are changes in three

dimensions triggered by megatrends

in the mobility ecosystem, namely

those in the technological dimension

of the automobile, social life, and the

trends adopted by the lawmakers and

countries.

The TOGG CEO evaluated the approach

of the company toward the concept of

the domestic automobile. He noted that

around 20 global examples of success

and failure had been analyzed during

the technical and feasibility studies of

the project. Karakaş underscored that

the market conditions are available for

global competition and the indigenous

automobile has a strong portfolio to

compete in the global market.

Speaking of the portfolio, he explained

that an SUV will be included among

the models given the demand in the

market and four to five models will

be on the market. Karakaş further

stressed that Turkey is not indifferent

to the transformation and megatrends

in the world, adding that there is a real

opportunity resulting from not only the

transformation of technology but also

the market.

“The race has just begun,” Karakaş

continued. “We have not compared

ourselves with the manufacturers of

internal combustion engines of 150

years, but with those who believe that

this work will be solved by the mobility

ecosystem and that the future will be

there because of the transformations

and megatrends.”

Indicating that there are over 500 startups

engaged in this line of business in

the world, three quarters of which are

interested in the mobility ecosystem

to be produced around the car with

these transformations, not the car

itself, Karakaş said that there is not

much difference between the classic

car manufacturers and Turkey in this

sense, underlining that compared to

beginners, the distance is short enough

to cover. Karakaş said that Turkey’s

Automobile Project is the result of a 15-

year effort. “We think that we can build

it very easily because Turkey, as well as

the automotive sector, has a really good

infrastructure,” he noted, pointing out

that they believe their plan has a very

solid foundation.

TOGG CEO Karakaş said the joint

venture has determined eight criteria to

implement this plan, listing the first one

as opportunity and market, followed by

a global brand and portfolio to compete

with the world, and the formation of a

global and competitive supply industry

and start-up ecosystem. “We think that

we can do it because if we can compete

at the moment, we can ensure its

sustainability as well. We want Turkey

to get intellectual property rights.

When we start our production, we will

enter the market to the extent that will

compete with manufacturers who have

been in this business for a long time,”

he said.

May 2019

48


Karakaş also highlighted that the

company does not pursue separate

quality for both the domestic market

and the foreign market as some

countries do.

“Since we are also a 15-year project, we

have enough breath, sources and belief

in this matter,” he said.

Touching on the project’s contribution

to the Turkish economy, Karakaş said

within the next 15 years the ecosystem

to be mobilized by the project will

contribute to the Turkish economy.

“When substituting vehicles, reducing

the dependence on oil and using more

efficient systems are calculated, it

has a positive contribution of 7 billion

euros to the current account deficit,”

he continued. “We will have nearly

4,000 employees in our company. If

one person works in the automotive

industry, four people will be employed

in the sub-industry and partners.

Therefore, we believe that we will

produce employment for 20,000

people.”

In November 2017, the Turkish public

saw the launch of a groundbreaking

initiative to manufacture Turkey’s

first domestic automobile. This goal

has brought together the country’s

largest manufacturers and companies

in a consortium that includes Kıraça,

Anadolu Group, Turkcell, Zorlu and

BMC.

The initiative came after repeated

calls from President Erdoğan for a

joint venture car project by the Turkish

Union of Chambers and Commodity

Exchanges (TOBB) and the Ministry of

Science, Industry and Technology.

Global trends in automotive industry

TOGG CEO Karakaş also spoke of the

global trends in the automotive industry

with specific notes on the development

of electric cars and autonomous cars.

“The availability of electric vehicles

with the development of electric

engines and battery technology

makes it an alternative to internal

combustion vehicles,” he continued.

“This process is further accelerated

with the development of environmental

awareness and the pressure of

emission laws. That is why we believe

that electric vehicles will soon replace

internal combustion vehicles,” he said.

Karakaş noted that autonomous

driving, combined with the development

of sensor technology and digitalization,

puts the car in a very different position.

“In our cars, we can do what we can

at home and at work because we will

not focus on driving. We define this as

the car’s transformation into a living

space,” he added.

Karakaş pointed out that with the

cities getting a bit smarter together

with technology, automobile sensors

will be able to interact with smart

cities, stressing the cars are being

transformed into a smart device

or a walking computer that can

communicate with the devices at home

- refrigerators, buildings, sites, cities

and traffic safety systems.

“When we combine all of them,

everything that happens to the mobile

phone with its usage areas will also

be happening to the car. On mobile

phones, while we used to be only able

to call someone, we can do almost

anything right now. The car is in

this transformation with the same

logic,” he noted. Karakaş said there

are many countries, spearheaded by

China, that perceive the technological

transformation, especially the

transformation in the automobile, as

an opportunity, and therefore change

the current postures, even the laws

of the city to the extent of urbanism.

Informing that China, which has been

investing very high amounts for years

especially in electric vehicles, intends

to invest $130 billion in the next 10

years. Adding that other automakers

will also invest up to $300 billion in the

next 10 years because if they do not

take part in the transformation, their

share of total profit pools will decrease,

Katakaş said with regards to all profits

generated in the automotive sector in

2017, the amount earned from new

business opportunities originating

from the mobility system accounts for

1 percent of the profit, which will go

up to 40 percent in 2035, meaning that

40 percent of the 2035 profitability will

come from these new areas.

“Conversely, the share of the classic

carmakers from their current job

in 2035 will be 60 percent. In new

technologies, profitability rates are

also higher, hence developing a very

attractive market,” he continued.

49

May 2019


Turkey or Bulgaria:

VW to decide on new plant

Amid many rumors over

recent months, it has

been reported that

German automotive

giant Volkswagen (VW) will

decide where to build its new

plant at the end of November,

with Turkey and Bulgaria

standing out as the two strongest

candidates for the company to

invest in.

According to the information

obtained by the German news

agency Deutsche Presse-

Agentur (dpa), the decision is yet

to be made as the issue will be

discussed at the VW supervisory

board meeting at the end of April

and the final decision will be

made at the supervisory board

meeting in November.

Deutsche Welle (DW) Turkish

revealed that personnel

expenses in both countries

are lower compared to those

in Germany, pointing out that

the result of the race between

the two countries is clear. VW

has made no disclosure on

the billions of euros worth of

investment.

Meanwhile, speaking to

automobile industry magazine

Automobilwoche, Alper Kanca,

Chairman of the Automotive

Suppliers Association of Turkey

(TAYSAD), said that the Turkish

public does not want VW to

see Turkey as a sales market

alone, and expects it to carry

out production in the country.

Recalling that VW sold 120,000

vehicles in Turkey last year

alone, Kanca said that the

company should give a positive

signal taking into consideration

Turkish-German relations.

Kanca added that the investment

to be made in Turkey will be an

important instrument in this

regard.

It is estimated that Turkey has

a high chance to be chosen in

terms of its current qualified

workers and distribution

structure. In addition, in mid-

January, VW had agreed to

produce minibuses at Ford

factories in Turkey. Bulgaria,

which is one of the options for

the German automaker, hopes

that the new plant will be opened

in the country. According to

dpa, a delegation from the VW

examined the Bulgarian capital

of Sofia ahead of German

President Frank-Walter

Steinmeier’s visit to the city in

early April. Conditions in the

country where the investment is

planned will be effective in VW’s

decision.

Last November, VW announced

that it would make an investment

of 44 billion euros ($49.8 billion)

in electric vehicles, autonomous

driving and digital technologies

for the next five years, disclosing

that about 30 billion euros of this

investment would be allocated

for the development of electric

vehicles. The company had also

revealed that Skoda Karoq and

Seat Ateca model vehicles under

VW will be produced in the new

factory planned to be opened in

Eastern Europe.

Turkey, Russia

work on aircraft,

armor parts

Russia and Turkey are jointly working

on aircraft and helicopters, and also

components for armor, the press

office of Russia’s state arms seller

Rosoboronexport, part of the state hi-tech

corporation Rostec, reported.

“We have a number of joint projects for

developing promising aircraft and rotorcraft

platforms, components for the armor

and the after-sale maintenance of the

armaments supplied,” the press office

quoted Rosoboronexport CEO Alexander

Mikheyev as saying.

Turkey is also showing interest in the

newest Russian combat modules, air

defense systems with different range

capabilities and anti-tank weapons. Despite

rivals’ interference in bilateral relations,

Russia and Turkey are coping with the

difficulties that arise, the chief executive

stressed.

“At present, we are discussing with our

Turkish partners about the implementation

of some of the most important projects

in the sphere of military and technical

cooperation and in the civilian industry... We

are undoubtedly ready for various formats

of technological cooperation, including such

science-intensive spheres as the aerospace

industry, helicopter-building and the energy

sector,” the Rosoboronexport press office

quoted Rostec CEO Sergei Chemezov as

saying.

The Rosoboronexport and Rostec chiefs

announced this on the eve of the IDEF’19

defense industry exhibition to be held

in Istanbul from April 30-May 3. The

exhibition will showcase equipment

for land troops, the navy, the air force,

security technologies, space technologies,

onboard systems and also helicopters,

ships, electronics, security systems,

transportation and logistics equipment and

systems.

May 2019

52


Auto production nearly 490,000 in Jan-April

ANKARA- A total of 489,429 vehicles

rolled off Turkish automotive industry

production lines in the first four

months of this year, the Automotive

Manufacturers Association (OSD) said.

The country’s auto productionincluding

automobiles, commercial

vehicles, and tractors- fell 13% yearon-year

in the January-April period.

The association said automobile

production in Turkey also fell 14%

to reach at 322,281 during the same

period.

From January to April, total auto sales

market almost halved to 123,155

vehicles.

Turkey’s automotive exports went down

8% on a yearly basis to hit 126,026 in

the first four months.

The sector earned $10.5 billion from

automotive exports between January

and April.

Share of imported cars in auto market shrinks to 61 pct

The share of imported automobiles in

the Turkish market has declined to 61

percent in the first three months of

this year as the market share of locally

produced models keeps growing.

Turkey imported more than 77.9

percent of its automobile in 2013. That

share dropped to 70 percent in 2017

and further declined to 63.3 percent

last year.

According to the Automotive

Distributors Association (ODD), the

market share of imported automobiles

in January-February fell to 61

percent, while the share of domestic

cars increased to 39 percent. Thus,

automobile imports have declined by

16.9 points since 2013.

While the automobile market shrank

by 52 percent in the January-February

period, imported car sales and

domestic automobile sales fell by 55

percent and 45 percent, respectively. A

total of 30,184 automobiles were sold

during this period.

Also, the sales of light commercial

vehicles dropped by 54 percent in the

same period, in which the share of

imports stood at 47 percent.

One of the most important reasons for

the decline in the share of imports was

the increased demand for automobiles

produced in Turkey.

Currently, five automobile brands are

producing eight models of automobiles

in Turkey. Tofaş manufactures the

Fiat Egea in Bursa, Oyak Renault

produces the Megane sedan and Clio

hatchbacks in Bursa, Toyota produces

the C-HR and Corolla sedans in the

industrial province of Sakarya, Hyundai

Assan produces i10 and i20 and Honda

produces Civic sedans in the country.

Another reason for the decrease in

imports is the fact that many brands

have not launched their 2019 car

models due to the recession, changing

the supply-demand balance in the

market. The gap caused by imported

cars in the market is currently

compensated by domestic automobiles.

According to forecasts, a total of

350,000 automobiles, including 220,000

imported, will be sold in 2019. The

share of imported automobiles is

expected to be 62.8 percent by the end

of the year.

Having run a foreign trade surplus in

the past decade with the exception of

the years of 2011 and 2015, the Turkish

automotive industry broke a new record

in 2018.

Because of the rise in domestic models,

the foreign trade surplus soared to $13

billion in 2018 from $6.5 billion in 2017.

A new foreign trade surplus record is

expected in 2019.

Automotive equipment manufacturer

Delphi Technologies has made Turkey

a base of after-sale services and spare

parts.

Reşat Dumanoğlu, the regional director

for Turkey, the Caucasus, the Middle

East and Africa at Delphi Technologies,

stated that the company grew by

44 percent in 2018. “Thanks to our

efforts, we have become the regional

directorate of 67 countries in Turkey,

the Caucasus, the Middle East and

Africa,” he said.

May 2019

56


Investment coordination council lays out new reform vision

to draw more FDI

The Coordination Council for the

Improvement of Investment

Environment (YOİKK) convened

to lay out a new revisionist

road map for reform that will further

strengthen Turkey’s investment

environment. In his opening remarks

at the meeting held in the Presidential

Complex, Vice President Fuat Oktay

drew attention to the reforms

implemented in the last 17 years.

“Turkey has been branded as the most

reformist country among the members

of the Organization for Economic Cooperation

and Development (OECD)

in eliminating the hurdles limiting

foreign direct investment (FDI).

Thanks to these reforms, Turkey has

attracted $210 billion in FDI in the

last 17 years. YOİKK, formed with the

inclusion and contribution of many

Turkish associations, bodies and

nongovernmental organizations (NGOs)

operating in the field of investment,

has been conducting activities since its

foundation, Oktay said.

YOİKK, formed with the inclusion

and contribution of many

Turkish associations, bodies and

nongovernmental organizations (NGOs)

operating in the field of investments,

has been conducting activities since its

foundation, Oktay said.

The vice president stressed Turkey’s

determination to conduct sweeping

reforms and noted that the meeting

will specify the activities to be held in

the upcoming period. The council will

seek to further improve the investment

environment, he added.

The YOİKK will determine flexible and

sustainable policies based on national

and international circumstances.

YOİKK has made significant

contributions to the improvement of the

investment climate, according to Oktay,

who also noted that all these reform

works were carried out by taking into

consideration the comprehensive

consultations and demands from

the sections represented by the

participants.

The vice president emphasized that

thanks to the results of the dedicated

work run by relevant ministries and

NGOs and coordinated by the board

in the recent period, Turkey ranked

43rd in the World Bank’s Ease of

Doing Business list for 2019, climbing

17 places compared to previous

year, noting that 2.4 percent out of

the 5.7 percent average economic

growth in the last 17 years came from

investments.

According to the report published

by the World Bank, Turkey received

74.33 points out of 100, improving 4.34

points compared to previous year. New

Zealand, which topped the list, scored

86.59 points.

According to the “Doing Business 2019

– Training for Reforms” report, the

previous year’s reforms accelerated

Turkey’s efforts to improve the

business climate for domestic small

and medium-sized enterprises (SMEs).

Oktay further remarked that the

continuation of the momentum in the

investment environment depends on

the sustainability and development of

works carried out by the institutions in

the recent period.

He indicated that with the vision it will

lay out, YOİKK will be a pioneer for the

increase of foreign direct investments,

both in the international and domestic

arenas.

“In addition to being a platform for

solving problems, YOİKK will act with

a perspective that aims to produce

an appropriate investment climate

for attracting tomorrow’s technology

and investments. We aim to make a

‘participatory and innovative’ spirit

of cooperation prevail in our board

studies, whose road map and operation

with main lines we will be designating.

We plan to primarily include in the

process the ‘solution oriented, welldefined

and result-oriented’ reform

proposals that our board members will

offer to further develop the investment

climate,” said Oktay.

The contribution and guidance of

YOİKK will have important effects on

the national development initiative,

according to the vice president.

“As a result of the improvement in the

investment environment, we expect the

international investments that will head

toward our country to produce added

value, provide technology transfer

to our country, and the employment

figures and the current account balance

to follow a more positive course. We

should worker harder to attract foreign

investment and remain competitive

in this period of escalating global

competition and financial tightening,”

Oktay said.

May 2019

58


Turkish drivers’ appetite for electric vehicles

above world average

As recent developments have

raised consumers’ belief in

the future of electric vehicles,

studies suggest that Turkish

consumers’ willingness to purchase

electric vehicles maintains a level

above the world average.

Developments in the field of electric

vehicles are moving very rapidly.

Studies show that battery prices are

rapidly declining, while the ranges

are increasing, plus fast charging

stations are becoming incrementally

widespread.

According to information compiled from

the TEB Cetelem Observatory 2019

report, electrical vehicles offer some

solutions in environmental, economic,

industrial and social terms thanks

to their specific technical features.

However, in addition to some possible

obstacles in the development process,

ongoing technical and organizational

issues are also worth noting.

When these obstacles are overcome,

drivers are expected to fully benefit

from the power and convenience of this

innovation. The results of the report

indicate that significant progress has

been made on issues related to the

infrastructure and legal regulations of

electric vehicles in the period between

the observatory survey conducted

in 2012 and the study conducted in

2019 on electric vehicles. Consumers’

perceptions and requests have also

changed during this period.

Through the promotional activities

carried out in this period and the

first models seen on the roads in the

meantime, people have gotten used to

this new product more and more.

In the survey conducted in 2012, the

lack of confidence in the technology

of the product was the third reason

for not buying this product, while this

item ranked sixth in this year’s survey,

proving that people have adopted this

product. While the limited range of

electric vehicles stands out as the main

weakness, it is seen that providing

customers’ acceptance of this factor is

an obstacle that cannot be ignored.

Moreover, while the purchase price

and range, which drivers consider as a

critical criterion for electric vehicles,

has not shown much improvement

in recent years, this element is still

considered to be one of the biggest

obstacles to people’s adoption of

electric vehicles. However, positive

developments have been recorded

in the amount of savings in usage

expenses. Consumers’ perceptions

of electric vehicles are likely to be

significantly improved due to the

increased attractiveness of electric

vehicles. The rate of people ready to

pay more for an electric vehicle in

Europe increased by 7 points compared

to 2012. Meanwhile, a survey of 10,600

people between the ages of 18 and 65

from 16 countries, including Turkey,

outlined the opinions of consumers

about electric vehicles.

According to the report, 25 percent

of the vehicles sold in the world are

expected to be electric in 2030. This

figure is expected to rise to 36 percent

in China, where the purchase is

encouraged, and up to 39 in Norway.

According to statements by Turkish

drivers participating in the survey, 29

percent of the vehicles to be sold in

Turkey will be electric.

Given the Turkish consumers’

perception of electric vehicles, the

reason for not buying is the vehicles’

high price. Short range despite long

battery charge time is also expanding

the distance between Turkish

consumers and electric vehicles.

Another factor keeping Turkish drivers

away from electric vehicles is their

range of 83 kilometers per day, which

is 32 kilometers above the world

average. In spite of the negative data,

the rate of Turkish drivers, who said

they could buy an electric car in the

next five years, was 60 percent, which

was 17 percentage points above the

world average of 43 percent. Turkey’s

first indigenous automobile to be

manufactured by the Automobile Joint

Venture Group (TOGG) is expected

to enter the market in 2022 with an

electric SUV in the C segment.

The fact that batteries will be cheaper

is shown as the first reason for electric

vehicles to become widespread as of

2030. A cost of $1,000 for one kilowatthour

in 2010 is now down by 5 percent.

In the future, this cost is expected to

fall below $150

May 2019

60


Current account gap drops at its lowest since 2009

Picking up from where it left off

at the end of last year, Turkey

has continued to see a gradual

decline in its current account

deficit. With measures taken by the

government and the stabilization

process in the economy, the country’s

12-month rolling current account

deficit has dropped to $12.83 billion in

March, its lowest level since the end

of 2009. The monthly current account

deficit in March also saw its lowest

level since October 2015 and dropped

to $589 million, decreasing by $4.14

billion year-on-year, according to the

Central Bank of the Republic of Turkey

(CBRT) report released. The figure was

nearly $4.73 billion in the same month

of 2018. A group of 17 economists,

surveyed by Anadolu Agency, estimated

a $900-million deficit in March, while,

on the other hand, the median of 12

forecast in a Bloomberg survey was for

a gap of $1 billion. Economists expect

the country’s current account deficit

to maintain its trend and continue to

narrow down in April as well and drop

below $10 billion. Decline to continue

rapidly during first half of this year

Haluk Bürümcekçi, said recovery in the

current account balance will continue

until end of the first half of 2019.

“Lower foreign trade deficit versus

the last year and posting surplus of

services item were main factors for

recovering of the current account

deficit,” he noted.

Bürümcekçi said that he expected the

country’s year-end current account

deficit will be $10 billion.

Banu Kıvci Tokalı, the chief economist

of HalkInvest, a subsidiary of state

lender HalkBank, stressed the current

account deficit could drop to $8-10

billion in April, of which data will be

released in June. She underlined that

the decline in the deficit would continue

rapidly during the first half of the

current year due to policies to support

exports, the base effect and moderate

energy prices. Tokali forecast that

the country would close the year with

a $19 billion current account deficit.

“The current-account-deficit-to-GDP

ratio, which was 5.6 percent in 2017

and 3.6 percent in 2018, could fall to 2.6

percent by the end of 2019,” she added.

Orkun Gödek, DenizBank Investment

Group strategist, highlighted that the

current account deficit of $589 million

was under the expectations of $1 billion

in March.

“In the first quarter, the current

account deficit was $1.9 billion, while

it was $16.2 billion in the same quarter

last year,” he said. In an interview ,

Treasury and Finance Minister Berat

Albayrak said the current account

deficit, which nearly hit $60 billion last

year, will nearly be zeroed by the end of

May. Albayrak said the current account

balance and surplus were in a period

of rapid recovery and that there would

be no external financing requirement in

the next period. The central bank said

in its report that the development in the

current account is mainly attributable

to a $3.7-billion decrease in the goods

deficit recording net outflow of $916

million. The CBRT also said Turkey’s

current account deficit – excluding

gold and energy – posted a $3.5-billion

surplus in March 2019, versus a

$573-million deficit in the same month

last year.

“Services item realized net inflow of

$1.3 billion increasing by $113 million

compared to March 2018,” the bank

said. It added that travel item under

services recorded a net inflow of $1.04

billion, rising by $55 million compared

with March 2018.

Previously, current account deficit fell

88.4 percent in January to $813 million

deficit, indicating a decrease of $6.22

million compared to January of the

previous year, bringing the 12-month

rolling deficit to $21.59 billion, the

lowest level of 105 months.

In February, it fell to $718 million, down

by $3.78 billion from the same month

last year. The 12-month rolling deficit

reached $17 billion in the month.

Economists forecast that the 2019-end

deficit will be $13.8 billion.

Last year, the current account balance

posted a deficit of around $27.6 billion,

improving from a nearly $47.5 billion

deficit in 2017. It realized at around

3.5 percent of the country’s gross

domestic product. The figure was the

lowest since 2009, while Turkey’s

highest annual current account deficit

over the last decade was seen in 2011,

with $74.4 billion. The country’s new

economic program, announced in

September 2018, targets a currentaccount-deficit-to-GDP

ratio of 3.3

percent this year, 2.7 percent in 2020

and 2.6 percent in 2021.

May 2019

62


Auto sales drop to 119,500 in January-April

Turkey’s overall auto sales market, including

light trucks, in the January-April period, shrank

48 percent compared to the same period in 2018,

the Automotive Distributors’ Association (ODD)

reported.

The number of cars and light commercial vehicles

sold in the country in the first four months of the

year stood at 119,440, ODD said in a statement.

Passenger car sales also posted a decrease of

47.5 percent to total 93,228 between January

and April. “In January-April 2019, the light

commercial vehicle market shrank by 49.7

percent, in comparison to last year, to 26,212,”

the group said in a statement.

Over 159,000

vehicles registered

in first quarter

The number of vehicles registered

in Turkey reached 159,219 in the

first three months of this year, the

country’s statistics authority said.

The first quarter figure was down

42.1 percent from the same period

last year, the Turkish Statistical

Institute (TurkStat) announced.

The total number of road motor

vehicles registered was around 23

million by the end of March.

Automobiles accounted for the bulk

of new registrations - 60 percent

(95,583) - a drop of 42.4 percent

year-on-year between January and

March.

In March, the number of registered

motor vehicles also slipped 37.9

percent compared to the same

month last year, to 58,7909, TurkStat

added.

The breakdown of model brands for

new registered cars in the month is

as follows: Renault, 16.1 percent;

Fiat, 12.3 percent; Volkswagen, 11

percent; Hyundai, 6.5 percent; Honda

and Toyota, 6.2 percent apiece; Opel,

5.3 percent; Peugeot, 4.3 percent;

Dacia, 4 percent; Mercedes-Benz, 3.7

percent; and other brands accounted

for 24.5 percent.

Ford scraps 3

factories, passenger

car production in

Russia over low

demand

U.S. carmaker Ford will close three of the

four factories of its Russian joint venture after

deciding to stop making passenger cars in a country where car sales have slumped

in recent years, the company said.

Ford said in a statement that it has signed a preliminary agreement with its local

partner Sollers on “a significant restructuring of its... joint venture in Russia,

focusing exclusively on growing its commercial vehicle business moving forward.”

The joint venture “will discontinue its passenger vehicle portfolio in Russia to help

deliver a more competitive and sustainably profitable business going forward,” Ford

said.

Ford, based in the US state of Michigan, said that by the end of June this year it will

close its vehicle assembly plants in the northwestern city of Saint Petersburg and

the city of Naberezhnye Chelny in Tatarstan, central Russia.

It will also close an engine plant in Yelabuga in Tatarstan that opened in 2015.

Sollers will have a 51 percent stake in the restructured joint venture.

Currently, the factories produce seven models including the Ford Transit van.

Ford said that the “Russian passenger vehicle market has been under significant

pressure in recent years, with recovery slower than expected and a shift to lowerpriced

passenger vehicle segments.”

The carmaker said that this led to “underutilization” of factories and “inadequate

returns on invested capital,” although sales of the Ford Transit continue to grow,

with a 15 percent share of the market segment.

Following a period of growth and massive investment by global carmakers, Russia’s

car market collapsed between 2013 and 2016, whiplashed by international sanctions

over the Ukraine conflict and a crash in global oil prices.

New car sales, a key indicator of consumer confidence, fell by more than half during

that period.

However, sales of new cars in Russia rose in 2018 for a second year running, but

slowed in February this year.

May 2019 64


Opening ceremony at the new Archroma Global Competence Center for Automotive & Synthetic Dyeing in Korschenbroich, Germany, in

presence of Alexander Wessels (center), CEO, Mark Dohmen (right), Head of the Global Competence Center for Automotive & Synthetic

Dyeing, and Thomas Hoffmann (left), Head of Operations, Korschenbroich. (Photo: Archroma)

Archroma Opens Global Competence Center for Automotive

& Synthetic Dyeing in Germany

Reinach, Switzerland - Archroma, a global leader in color and specialty chemicals

towards sustainable solutions, has officially inaugurated its new Global Competence

Center for Automotive & Synthetic Dyeing in Korschenbroich, Germany.

The site is part of former M. Dohmen,

an international group specializing

in the production of textile dyes and

chemicals for the automotive, carpet

and apparel sectors, that Archroma

acquired between 2014 and 2018.

The inauguration ceremony, held

on 6 May 2019 in the presence of

Alexander Wessels, CEO of Archroma,

and Mark Dohmen, former CEO of M.

Dohmen and Head of the new Global

Competence Center for Automotive

& Synthetic Dyeing, also celebrated

the merger of M. Dohmen GmbH into

Archroma Germany GmbH.

With the new Global Competence

Center for Automotive & Synthetic

Dyeing, Archroma creates a global

hub for technical expertise, market

knowledge, technology and creativity.

The site of Korschenbroich will

therefore continue to operate as a

specialist production and laboratory

facility specialized in dyes and

auxiliaries for synthetic fibers and wool,

such as the Dorospers®, Dorolan® and

Fadex® ranges.

The exceptional combination of

global experts, R&D laboratory and

production will be fully dedicated to

helping manufacturers of automotive

and synthetic textiles to optimize their

productivity and create value in their

markets.

The new Competence Center for

Automotive and Synthetic Dyeing

comes as a new addition to Archroma’s

existing network of global hubs of

expertise: The Global Competence

Center for Special Dyes in Barcelona,

Spain and the Global Competence

Center for Finishing in Reinach,

Switzerland.

“The new Archroma Global Competence

Center will strive to create the new

innovative and sustainable system

solutions that our customers need

to win on their markets,” Alexander

Wessels commented at the ceremony.

“This is how we best support our

customers, whilst at the same time

pushing on our agenda to continuously

challenge the status quo in the deep

belief that we can make our industry

sustainable.”

“I am extremely proud to see the

strong experience of M. Dohmen being

the foundation of Archroma’s Global

Competence Center for Automotive &

Synthetic Dyeing in Germany, serving

customers operating in applications

as demanding and challenging as

automotive or technical textiles,” Mark

Dohmen added.

Experts of the new Archroma Global

Competence Center for Automotive

& Synthetic Dyeing will be at the

upcoming Techtextil exhibition to

introduce the latest of its innovations:

Fadex® AS New, a new “super UV

protector” to make automotive &

transportation textiles more resistant

to light. For more information, click

here.

Dorospers®, Dorolan® and Fadex®

are trademarks of Archroma registered

in many countries.

© 2019 Archroma

May 2019

68

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