Automotive Exports March 2022

Monthly automotive aftermarket magazine
GROUP CHAIRMAN
H. FERRUH ISIK
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Dynamism prevails as usual
It should be noted that the Turkish automotive sector made $11.8 billion (TL 163.72 billion)
in subindustry exports last year, according to official data.
The automotive sector, which has been the export champion of Turkey for 16 years, made
a total of $29.3 billion in foreign sales in 2022.
Actually, the last decade has been a turning point for the Turkish automotive industry in
terms of its integration into the world economy. Foreign firms that have been attentive to
the potential that the Turkish automotive industry possesses have been investing in Turkey.
Foreign partners have begun to view their facilities in Turkey as their production center for
the global markets.
The auto parts industry of Turkey has developed rapidly as a consequence of developments
in the automotive industry. The Turkish auto parts industry with its large capacity, wide
variety of production and high standards, supports automotive industry production and
the vehicles in Turkey and also has ample potential for exports.
The Turkish automotive and auto spare parts industry have prospered dynamically in line
with ever increasing demand from abroad. So, business people operating in the industry
have become outward oriented more than ever before. This fact is also reflected through
the pages of our publications.
It is hard to keep its competitive position in the world market full of emerging players.
Thus, manufacturers have shifted their operations to value-added automotive products
and brand names. Currently, Turkish manufacturers have their own designs and brands
in international markets.
In evaluating the future export potential of the automotive industry, using cross-country
statistics, it is possible to indicate that Turkish automotive industry has comparative
advantage regarding labor productivity, labor cost and the share of capital in the value
added, especially with respect to the mature producers in the world. More than half of
these manufacturers compete in international markets and set high standards of export
figures.
Our publications remain at the service of those businesses people seeking to increase their
share in the increasingly competitive foreign markets.
As usual, we convey the message of the Turkish automotive and autospare parts exporters
by participating in major fairs and exhibitions around the world.
We are convinced that the events in which we participate would be instrumental to
increase business opportunities in the automotive industry.
We wish lucrative trade for all participants.
automotiveexport
EDİToR
automotiveexports

Turkey’s auto
sub-industry
records over
$11B exports in
2021
The Turkish automotive sector recorded
$11.8 billion (TL 163.72 billion) in
subindustry exports last year, according to
official data.
The automotive sector, which has been the
export champion of Turkey for 16 years,
made a total of $29.3 billion in foreign sales
in 2021, according to an Anadolu Agency
report on that cited data from the Uludağ
Automotive Industry Exporters’ Association
(OIB).
The automotive sector made the highest
export in the subindustry product group.
This group, which makes sales to more
than 200 countries, free zones and
autonomous regions, increased exports
by approximately 26% compared to 2020
when the sales totaled $9.3 billion.
Subindustry exports accounted for 40.22%
of the total export sales of the automotive
industry.
Germany took the lion’s share in Turkey’s
subindustry exports with 23.23%.
Exports to this country last year increased
by 30.62% compared to the same period of
2020 and rose to $2.7 billion.
The second country to which automotive
subindustry manufacturers exported the
most was Italy. Exports to Italy in 2021
were recorded as $778.4 million, up
37.47% compared to 2020.
The sector’s exports to the U.S., which
ranks third in the list, increased by 35.07%
compared to the previous year and reached
$728.3 million.
The automotive industry also exported
over $100 million each to France, the
United Kingdom, Russia, Spain, Poland,
Belgium, Romania, Morocco, Slovenia, the
Netherlands, Egypt, Hungary, Israel, Iraq,
Iran, Brazil, Czech Republic and Ukraine.
Meanwhile, local automotive industry
exports jumped some 15% throughout
2021, official data showed, but the sales
of passenger cars and light commercial
vehicles in Turkey fell 4.6%.
The sales of passenger cars and light
commercial vehicles were down to around
737,350 units last year, according to
data from the Automotive Distributors
Association (ODD.) Sales in 2020 stood at
nearly 773,000.
In December, sales fell 40.3% year-overyear
to 62,243, the association added,
down from 104,293 units in 2020.
Automobile sales in Turkey have declined
in the past months due to supply issues
caused by the coronavirus pandemic and
high loan rates amid a slide in the Turkish
lira.
The ODD had forecast that sales would
amount to between 825,000 and 875,000
in 2021, before rising to 850,000-900,000
in 2022.
The industry championed the country’s
annual foreign sales for the 16th
consecutive year. It accounted for 13.3% of
last year’s overall exports, which surged by
more than a third to hit an all-time high of
nearly $225.4 billion.
The European Union market accounted for
64.6% of the total automotive exports, with
$19 billion.
Germany became the largest export
market. Sales to Germany increased by 17%
compared to the previous year, reaching
$4.1 billion.
The industry also saw rises in its exports
to France and the U.K., with 14% and 39%
respectively. There was also a 22% increase
in exports to Morocco.
While exports to the Middle East fell
by 15% last year, they rose 38% to the
Commonwealth of Independent States
(CIS), 28% to the North American Free
Trade Area and 21% to African countries.
March 2022 8

Ford Otosan
beats forecasts
with $646M
profit in 2021
Ford Otosan, the joint venture of U.S.
automotive giant Ford and Turkey’s largest
conglomerate Koç Holding, reported a
net profit of TL 8.8 billion ($646 million),
beating market expectations of TL 6.7
billion, boosted by an upward trend in
overseas sales.
The company increased its sales revenues
by 44% in 2021 compared to the previous
year and reached TL 71.1 billion.
Ford Automotive increased its overseas
sales by 57% to TL 54.5 billion and
increased its domestic sales by 12% to
TL 16.5 billion. The company’s operating
profit increased by 96% compared to the
previous year and reached TL 9.4 billion.
Ford, which sold a total of 361,600 cars
in 2021, exported 288,500 of them
abroad. While the company’s capacity
utilization increased by 4 points to 76%,
it decreased by 26 points in the fourth
quarter compared to the same period of
the previous year and became 82%.
An evaluation from the company stated
that profitability in 2021 was strong
thanks to the strong export performance
achieved despite the chip crisis, as well as
pricing discipline, cost-reducing measures
and effective expense management,
exchange rate effect and export
agreements.
While the company expects the total
automotive market size to be between
800,000 or 850,000 in 2022, it predicts
retail sales to be nearly 100,000. The
company also predicts exports to
reach around 360,000 and investment
expenditures to reach 620 to 670 million
euros ($705-$761 million).
March 2022 10

Supply chain
bottlenecks to
dominate 2022
car industry
agenda
Haydar Yenigün Chairman of the Board
of Automotive Industry Association
The automotive sector passed the year
2021 under the shadow of the chip crisis,
logistics bottlenecks and record increases
in raw material costs, while sector
representatives in Turkey say the main
agenda of local automotive manufacturers
this year will be supply chain management,
again.
Automotive Industry Association (OSD)
head Haydar Yenigün, evaluating the
course of the sector, said that supply chain
management will continue to be the No. 1
item in the 2022 agenda of the sector.
“The chip crisis will continue in 2022. We
now hold procurement meetings once a
day, which were previously held once a
month. We have a supply chain meeting
every evening. Every day a new picture
emerges,” he said.
Yenigün stated that on the one hand,
new chip factory investments are being
evaluated for the near future with the hope
that life can return to normal by the end of
the first quarter of 2023.
Stating that the chip is not the only
problem in the supply chain, Yenigün
said there is also a problem in the
transportation of the supply as well.
According to the World Container Index,
container freight on the east-west route,
which was at the level of $5,000 (TL
67,480) at the beginning of 2021, increased
to $9,000 at the end of 2021.
“An increase in freight is expected this year
as well,” Yenigün said, as the prices are
expected to be about two to seven times
higher in 2022. “With the entry of new
ships into the market, it is foreseen that the
relaxation in freight and reservations will
occur in 2023 at the earliest.”
Expressing that the increase in input costs
will also continue, Yenigün said: “There
have been price increases between 100%
and 300% in raw materials such as sheet
metal, aluminum and rubber in the last
year. In particular, there has been an
increase of 274% in the last year in Turkish
lira terms in the domestic sheet metal
market. All this is reflected in the vehicle
prices,” along with the rising electricity
costs in Turkey.
“There was an increase of 400% in natural
gas and 273% in electricity between
January 2021 and January 2022 on a
Turkish lira basis. This process is no longer
a manageable process for users, producers
and investors,” he said.
According to the data of the OSD, total
vehicle production in 2021 decreased by
2% compared to the previous year to 1.28
million units, while automobile production
decreased by 8% to 782,835 units. With
the tractor production, the total production
reached 1.331 million units. The reason
why the biggest loss on the production side
was on the automobile is that this segment
was most affected by the global chip crisis.
Yenigün stated some 10.3 million vehicles
worldwide were produced incompletely
due to a semiconductor shortage.
“That is a very serious number. At the
beginning of the year, we predicted a loss
of 5 million-6 million units. But with each
passing month, things have progressed a
little more haphazardly,” he said.
Yet, Yenigün also stated that there were
pleasing developments on the export side.
Automotive exports increased by 2% on a
unit basis compared to 2020 and amounted
to 937 units. Automobile exports, on the
other hand, decreased by 5% to 565,361
units. The automotive industry, which
made exports worth $29.9 billion last year,
took a 13% share of the total exports.
“There is a slight increase in exports on the
basis of units. There is also a very serious
increase in the number of exports. The
value of exports per kilogram is $10.62. It
reached its highest level ever. But it’s not
enough, we’re working to make it $20,” the
sector official said.
Industry and Technology Minister Mustafa
Varank also shared a statement via his
Twitter account regarding the country’s
automotive sector exports.
“Last year, 772,000 new and commercial
vehicles were sold in Turkey,” he said,
adding: “The Turkish automotive industry
closed the year 2021 with $29.8 billion
exports revenue.”
The sector, which sold to nearly 200
countries, autonomous and free zones
last year, sold the most vehicles to the
European Union with a share of 64.6%.
Foreign sales to the “Other European
countries” group, which the United
Kingdom has been included in since leaving
the EU, increased by 32%.
Meanwhile, the best scenario for 2022
project production is to increase by 15%
and boost exports by 17%.
Yenigün stated that they expect a sale
higher than last year in the domestic
market as well.
March 2022 14

Turkey hikes tax
thresholds for
some vehicles
Turkey has raised price thresholds for
a special consumption tax on vehicles
with small combustion engines, while
adding more categories, according to a
presidential decree published in the Official
Gazette, a move that will help cut vehicle
prices.
A 60% tax rate is to be levied on vehicles
with engines smaller than 1,600 cubic
centimeters (cc) (97.6 cubic inches) in a
price band of TL 150,001 to TL 175,000,
($11,136 to $12,992) after the adjustment.
The rate rises to 70% for vehicles that cost
up to TL 200,000 and 80% for those priced
above TL 200,000.
Previously, all cars that cost more than TL
150,000 were subject to the 80% rate.
The maximum price for the tax rate of 45%
was raised from TL 92,000 to TL 120,000,
and the threshold for the 50% tax rate
was raised to between TL 120,000 and TL
150,000. Passenger vehicles sold in Turkey,
already under a large tax burden, will see
prices decrease as a result of the move,
though the benefit is likely to erode quickly
as sellers are expected to hike prices
because of a depreciation in the Turkish
lira. Sales of passenger cars and light
commercial vehicles in Turkey fell 4.6% to
around 737,350 units throughout 2021,
according to data from the Automotive
Distributors Association (ODD.). Sales in
2020 stood at nearly 773,000.
In December, sales were down 40.3% yearover-year
to 62,243, down from 104,293
units in 2020. Sales have declined in the
past months due to supply issues caused
by the coronavirus pandemic and high loan
rates, amid a slide in the lira.
March 2022 16

Hisar Elektrik
strengthens
its share in the
foreign market
Serving its distinguished customers in
and out of Turkey, with the sole principle
of unconditional customer satisfaction,
Hisar Elektrik continues to get their feet
on the ground within the sector with their
product quality and competitive prices.
After 19 years of sector experience, HİSAR
ELEKTRİK has been founded by Hacer
SEYREK in 2003 with a very modest budget.
Hisar Elektrik has transformed to a wellknown
company with its product quality
and competitive prices. They are active
in the field of manufacturing Crimping
terminals, terminal insulators, connectors,
Lamp Glasses, mainly for Automotive and
Household appliances and goods.
Hacer Seyrek, Founder of Hisar Elektrik,
shared their dealings future export
objectives.
Production and product groups for the
automotive supply industry
Following 20 years of sectoral experience,
Hisar Elektrik was founded by Hacer Seyrek
in 2003 with a fairly modest budget.
Then, the company grew into e wellknown
brand with its product quality and
competitive prices. We are actively dealing
with manufacturing crimping terminals and
connectors at a 1500 sqm closed facility
with 30 qualified personnel. Primarily for
automotive and white goods, Hisar Elektrik
manufactures brass, copper, chromium
nickel, steel, niccolite, phosphor bronze
crimping terminals, V0/V2 non-combustible
plastic connectors, terminal insulators,
headlamp insulators and lamp glasses. We
have got monthly production capacity of
20.000.000 terminals, 2.000.000 plastic
connectors and 250.000, diverse cable
types.
The company has ISO 9001: 2015, ISO
14001: 2015, ISO 45001: 2018 Quality
Certifications, Reach Certification and RoHS
Compliance.
Export markets and objectives
40% of our sales comes from export. Our
main export markets are Russia, Belarus,
Ukraine, Moldova, Greece, Bulgaria,
Poland, Czech Rep, Hungaria, Romania,
Serbia, Macedonia, Israel, UAE, Iran,
Jordan, Lebanon, Egypt, Morocco, Tunisia
and Algeria. We still move on with our
export contacts with those countries even
under pandemic circumstances.
March 2022 18

EU auto sales
likely to rebound
this year
Automobile sales will likely rebound by
7.9% in the European Union in 2022 but
remain far below the 2019 level, industry
figures showed . The European Automobile
Manufacturers’ Association (ACEA) said
it “now forecasts that passenger car
registrations in the EU will return to
growth this year, rising by 7.9% to reach
10.5 million units.” That follows 9.7 million
units sold in 2021. The ACEA based its
forecast on expectations semiconductor
chip supplies will stabilize this year after
shortages severely hurt the industry.
While the European Union launched a plan
to raise tens of billions of euros to boost
semiconductor production in Europe,
the ACEA urged the bloc to reduce its
dependence on non-European suppliers to
avoid damage to the industry in the future.
After a sharp drop in sales in 2020 with the
coronavirus pandemic, the United States
and the EU auto markets were paralyzed
last year by semiconductor shortages,
especially those made in Asia.
However, ACEA said, the share of
rechargeable hybrid and electric vehicles
has continued to increase: They now
account for one out of every five cars sold
in the EU.
“However, we cannot forget that this is still
quite a fragile market,” according to ACEA
President and CEO of BMW Group, Oliver
Zipse.
He added the market “is highly reliant
on support measures such as purchase
incentives and, above all, the widespread
availability of charging infrastructure.”
Yet, the ACEA said the “pace of
infrastructure roll-out is lagging way
behind consumer demand for electricallychargeable
cars.”
While the European Commission has
proposed an end to petrol and dieselpowered
cars for 2035, the European
Parliament and national governments
are discussing continental standards for
recharging points. The ACEA has urged the
parliament and the national governments
to bolster the European Commission
proposal to ensure an adequate recharging
network is set up.
March 2022 20

GQP produces in
European standards
GQP Makine established about 4 years ago, produces exhaust manifolds.
The company partner Ali Karaçobanoğlu, stating that the products they
produce, are at European standards, said that they will make more
progress in the field of export and production.
Karaçobanoğlu, giving information on production and other issues, said
“We established GQP Makine in Konya in 2018 with my partner Eyyüp
Kabadayı and started production. We have been producing exhaust
manifolds since then. Our brand, continuing to develop products in its
field, manufactures according to European standards. Our experienced
staff is in an effort to reach the best in the products we have produced.
We also send our products abroad. African, Russian and American
markets are where we work and care about.”
Company partner Ali Karaçobanoğlu, also gave information about
production, and concluded his words as follows: “The exhaust manifold
is a component of the exhaust system of internal combustion engines.
It collects the exhaust gases and transmits them in the direction of the
exhaust system. The casting quality of the products we produce is GGG,
heat treated and surface coated. Our past vision and our goals, which we
know as a principle, always adopt to be fast, reliable and high quality. We
are struggling with our sensitivity in our production with our workshop
and machines, with great effort to satisfy our customers.
March 2022 24

Solvay Launches New Amodel®
Supreme and Bios Grades to
Support Further Sustainable
Innovation in E-Mobility
Solvay is accelerating the pace of
providing the automotive industry
with an entirely new generation of
Amodel® polyphthalamide (PPA)
materials targeted at higher demands
of performance and sustainability for
advanced electrical and electronic
applications in e-mobility.
In the Supreme range, Amodel® PPA AE
9933 and AE 9950 have been designed for
e-motor and inverter busbars operating
at 800 volts and higher. They combine
best-in-class comparative tracking index
(CTI) ratings with high thermal cycle
shock resistance from -40 to 150 °C. As
a breakthrough vs. conventional PPA
technology, they will also retain their CTI
over time even after temporary exposure
to peak temperatures above 150 °C.
New halogen-free flame retarded Amodel®
Bios HFFR R1-133 and HFFR R1-145 meet
with the growing trend of integrating
the e-motor, power electronics and the
gearbox into one single consolidated
electric drive system. With a CTI of >600
volts, heat resistance of >120 °C and
excellent dimensional stability, these
grades enable the design of highly
compact systems using miniaturized
components. Moreover, they provide UL94
V0 flammability ratings without the need
for halogenated flame retardants. Besides
addressing safety concerns in the event
of uncontrolled thermal excursion, the
halogen-free formulation also minimizes
the risk of electronic corrosion.
In addition, Solvay is offering Amodel®
Bios AE R1-133, an electro-friendly grade
specifically developed for surface mounted
data connectors that can be reflow
soldered without blistering. Compared to
standard PPA, the higher impact resistance
and weld-line strength of the material
allows designers to further reduce the wall
thickness of connectors, saving up to 50
percent in footprint on the printed board
and giving more space for other electronic
devices.
“Amodel® Supreme and Bios are garnering
a high level of interest among designers of
e-propulsion systems, including e-motors,
power electronics, and electronic coolant
pumps. Beyond adding value by improving
the thermal and electrical performance of
e-mobility components in these systems,
the new additions to the Amodel®
polymers family are being more widely
considered as manufacturers are seeking
to meet ambitious sustainability targets,”
states Brian Baleno, Head of Marketing,
Automotive at Solvay Specialty Polymers.
Amodel® PPA Supreme is currently
considered the highest performance
thermal and electrical PPA on the market,
while Amodel® PPA Bios features a
partially bio-based long-chain molecular
structure with the highest glass transition
temperature (Tg) as well as the lowest
global warming potential (GWP) compared
to incumbent bio-sourced long-chain PPAs.
As part of the company’s One Planet
commitment to sustainability, Solvay has
reduced the CO2 footprint of Amodel®
PPA by 30 percent since 2013, and uses
100 percent renewable energy in the PPA
production at its global manufacturing
plant in Augusta, Georgia.
March 2022 26

Turkish auto
sector records
$2.2B exports
in January
Turkey’s automotive industry exports,
which have been the export champion of
the Turkish economy for 16 consecutive
years, decreased by 1.6% to $2.2 billion (TL
29.85 billion) in January, according to the
data of the Uludağ Automotive Industry
Exporters’ Association (OIB).
Despite the decline, the share of the sector,
which still ranks first in the country’s
exports, in total exports was 12.7%, data
showed.
OIB Chairperson Baran Çelik said that in the
first month of 2022, the world continued
to face a wide array of problems such as
the semiconductor chip crisis, raw material
supply problems and increasing costs, and
that “the largest product group was again
the supply industry.”
He said while a decrease was experienced
in the passenger car, bus, minibus and
midibus exports, an increase was seen in
auto supply industry sales.
“We recorded high increases of up to 40%
in countries such as the United Kingdom,
the United States and Egypt,” he said.
Based on product group, supply industry
exports increased by 7% to $951 million
in January, while passenger car exports
decreased by 21% to $654 million, and the
exports of motor vehicles for transporting
goods increased by 3% to $440 million and
bus-minibus-midibus exports increased by
39% to $65 million.
While exports to Germany, the country
to which the most exports are made in
the auto supply industry, increased by 3%
in January, a 12% increase was seen in
exports to the U.S.
The auto supply industry raised its foreign
sales to Russia, Poland, Slovenia and the
Netherlands, which are also important
markets, by 32%, 21%, 26% and 29%,
respectively.
The product group’s exports to Morocco
and Hungary, however, decreased 12% and
13%, respectively.
In January, passenger car exports
decreased by 66% to France, which is
one of the most important markets for
this product group. Decreases were also
experienced in sales to Italy by 53%,
Sweden by 55% and Belgium by 41%.
Exports of passenger cars increased to the
U.K. by 53%, Egypt by 30% and the U.S. by
259% in the same month. While exports
of motor vehicles for the transportation of
goods increased by 30% to the U.K., which
is the country to which the most exports
are made in the product group, 45% of
increase experienced in sales to Slovenia,
16% to Belgium, 19% to the U.S., 28% to
France and 25% to Italy, a 22% decrease
was seen in exports to Spain. In the busminibus-midibus
product group, there was
a 9% increase in exports to France and
a 48% rise to Italy. Total exports of $325
million were recorded to Germany, which
took the lion’s share, with an increase of
1% in January. While $268 million worth
of products were exported to the U.K.,
which is the second-largest market, with
an increase of 34%, exports to France
decreased by 40% to $182 million. Exports
increased by 25% to Slovenia, 41% to the
U.S., 40% to Egypt, 37% to Russia, 26.5% to
Romania, 23% to Italy and 23% to Sweden.
Exports to the European Union countries,
the largest market based on the country
group, dropped by 11% in January and
became $1.39 billion. EU countries received
a 62% share of expor
March 2022 28

Car spare parts shortage mirrors
rising economic crisis in Sri Lanka
Side mirrors for Suzuki’s compact Wagon R
are reported becoming a prized commodity
in Sri Lanka as dealers of car spare parts in
the island nation’s main city of Colombo
are receiving a steady stream of customers
looking for the humble product.
The scramble highlights rising economic
risks for the South Asian country as imports
slump, foreign exchange reserves plummet
and a potential sovereign default looms.
Suzuki’s boxy, five-seater vehicle is hugely
popular in Sri Lanka, given its low running
costs. With some 30,000 of the cars
sold over the past four years in a nation
that has relatively high road crash rates,
replacement side mirrors are commonly
sought in the spare parts shops scattered
across the suburb of Nugegoda.
“Everyone is looking for Wagon R parts,”
said Supun Deshak, a salesperson at one
store in the district where shop fronts are
piled high with reconditioned spare parts.
The difficulty is that importers are
struggling to source car parts because they
are deemed non-essential imports under
rules drawn up by the government to save
dwindling foreign exchange reserves after
the coronavirus pandemic hit.
Reserves have plummeted to $2.36 billion
from $7.5 billion in January 2020. At the
same time, the government faces a debt
obligation of around $4 billion this year,
and local banks are often unable to provide
dollars that importers need.
“The biggest concern right now is the
difficulty in importing spare parts for
maintaining the existing fleet of vehicles,”
said Yasendra Amerasinghe, chairperson
of the Ceylon Motor Traders Association
(CMTA), which represents the country’s
major vehicle importers.
The CMTA estimates imports of car spare
parts will fall by around 30% in value
terms this fiscal year, compared to prepandemic
levels, primarily because of the
foreign exchange shortages in the past few
months.
Five auto dealers in Colombo told Reuters
many spare parts were already in short
supply, with only a trickle of new stock
coming in from abroad, driving up local
prices. Exacerbating the problem are
thieves looking to make a quick buck by
stealing side mirrors of popular models
like the Wagon R to sell in a thriving grey
market, the dealers said.
The price of reconditioned Wagon R
mirrors has surged by more than 35% from
pre-pandemic levels to at least 30,000
Sri Lankan rupees ($148.5) per piece, the
dealers said.
The economic crisis facing the country – its
worst in a decade – has also triggered an
escalation in second-hand vehicle prices.
Almost all car imports were banned in
March 2020, followed by a stop on imports
of other non-essential goods like air
conditioners, refrigerators and video games
consoles, as part of the government’s bid
to deal with the financial strife.
That has pushed the cost of some secondhand
vehicles up by more than 100%,
the CMTA said. Sri Lanka does not mass
produce any cars locally.
A used Wagon R currently costs around 5
million Sri Lankan rupees, well above the
2.8 million Sri Lankan rupees a brandnew
vehicle cost in 2018, said CMTA Vice
Chairperson Virann De Zoysa.
March 2022 30

G-20 should boost tax, development aid
Treasury and Finance Minister Nureddin Nebati
Turkey’s Treasury and Finance Minister
Nureddin Nebati, speaking at the G-20
Finance Ministers and Central Bank
Governors Meeting , called on G-20
members to continue providing capacitybuilding
support to developing countries in
taxation and development.
The minister attended the meeting online,
which is being held in Indonesia’s Jakarta
this year.
“We support the comprehensive agenda in
the international tax field. We welcome the
intention of the Indonesian Presidency to
hold inclusive discussions for the benefit of
all countries,” Nebati said.
He referred the global tax reform as one of
the most important achievements of the
G-20 group.
“With this landmark success, the G-20
has once again proven its credibility
and strength. To fulfill its mandate as
a pioneering platform, the G-20 must
continue to move forward in a responsible
and fair manner,” the minister said.
In October last year, the finance ministers
of G-20 countries agreed on the historic
global tax reform that is to revamp the way
multinational companies are taxed to make
sure they pay their fair share wherever
they operate.
“Emphasizing that they have always
believed that it is very important to reach
a consensus on the international tax issue
in solving the challenges arising from the
digitalization of the economy,” Nebati
further stressed that they believe that the
support given by the G-20 to the Inclusive
Framework is very important for the proper
implementation of the results of the tax
declaration. If G-20 members continue
to provide capacity-building support
and technical assistance to developing
countries, “these countries will be able
to adapt to the new international tax
architecture in a timely manner,” he said.
Nebati went on to say that, as G-20
members, “we must act in synergy to move
towards carbon-neutral economies, taking
into account the principle of ‘common
but differentiated responsibilities and
relative capabilities’ as well as national
circumstances.”
Turkey, US joint venture Ford Otosan introduces new electric cars
Ford Otosan, a joint venture of Koç Holding,
Turkey’s largest conglomerate, and United
States automotive giant Ford introduced
its electric vehicles, Rakun Pro2 and Rakun
Pro3, which it produced by combining knowhow
in electric and commercial vehicle
production with its innovation power.
The vehicles developed under the
company’s new venture, Rakun Mobility
Technology and Trade Inc, aims to provide
services with different business models for
all users looking for innovative and light
mobility solutions.
Haydar Yenigün, general manager of Ford
Otosan, said in a company statement
that today great transformations in the
transportation sector are occurring.
“With the inspiration we received from
our customers, with the knowledge we
have in electric vehicle production and
commercial vehicle production, we dreamed
of producing an environmentally friendly,
electric vehicle with less than four wheels
that will serve end-point delivery,” he said.
“This is how Rakun was born,” Yenigün said,
noting that the company takes its work in
mobility to the next level by integrating
it with product development, innovation
and production capability. Eren Atlı, Rakun
Mobility Inc. general manager, stated that
with the Rakun Pro 2 and Pro 3, businesses
will have the opportunity to deliver orders
in a reliable, durable, and most importantly,
100% electric, therefore in a soundless and
environmentally friendly way.
“As a first step, we will bring our vehicles
together with corporate customers through
the method of rentals and sales. We are
planning to have our individual customers
on the road with Pro2 and Pro3 in the
future,” Atlı said.
The 5 kW/h battery in Pro2 and Pro3 can be
charged comfortably and easily by plugging
the cable into the socket of a regular
electricity network.
March 2022 32

Volvo Cars,
Mercedes
post boosting
revenue despite
supply snarls
Chinese-owned Volvo Cars and Mercedes
said their revenue rose but global supply
chain bottlenecks caused sales and profits
to fall in the last quarter of the year.
Volvo Cars said the global shortage of
semiconductors – an essential tech
component in modern cars – caused sales
and profits to fall in the last quarter of the
year.
Retail sales fell by 20% to 168,000 units in
the fourth quarter of the year.
But revenue fell at a smaller rate, 6%, as
“strong demand had a positive effect on
prices and the sale of more expensive cars,”
while interest in electrified cars continued
to grow globally.
Revenue fell to 80 billion kronor ($8.6
billion) from the same quarter in 2020
while net profit sank by 60% to 2.3 billion
kronor.
Owned by Geely, the Sweden-based
carmaker said the semiconductor shortage
worsened in the second half of 2021.
“The result was a year of two halves,” Volvo
Cars said in an earnings statement.
“During the first half, the market was
up by double digits but abruptly stalled
in the second half due to COVID-19-
related shutdowns in Southeast Asia and
other semiconductor-related production
disturbances,” it said.
The picture was brighter for the full year,
with revenues jumping by 7% to a record
282 billion kronor.
Net profit soared to 14.2 billion kronor,
nearly double the 2020 figure.
Profitability also rose, with its operating
margin rising by four percentage points to
7.2%.
“2021 was a year to be proud of for
Volvo Cars,” said chief executive Hakan
Samuelsson.
“Looking ahead, uncertainty is still high.
While component shortage has eased
somewhat, we expect the supply chain to
remain a restraining factor,” he warned.
Volvo Cars, which plans to sell only fully
electric models by 2030, said the share of
sales of rechargeable vehicles – including
plug-in hybrids – grew to 34% in the
fourth quarter.
‘Solid net pricing’
In Germany, Mercedes-Benz beat
expectations with a record profitability
margin of 15% in the final quarter of
2021 “driven by solid net pricing” – or
the ability to sell its cars for higher prices.
To some extent, automakers were able to
use chips in their most profitable cars.
If Mercedes-Benz’s overall sales slid 5%
last year, those of its S-Class sedans rose
by 40% and its luxurious Maybach brand
by 50% to a new record.
“Our focus on profitable growth and cost
discipline combined with a desirable
product lineup translated into strong
financial performance,” chief executive
Ola Kallenius said in a statement.
Operating profits at the company’s car
and vans division is expected to come in
around 14 billion euros, compared to 6.8
billion in 2020 and 6.2 billion in 2019.
March 2022 36

Turkey’s
automotive
exports nearing
pre-pandemic
level
Baran Çelik, Chairman of the Board, OIB
Turkish automotive exports rose 16 percent
to $26.4 billion in the first 11 months
of this year, according to the Uludağ
Automotive Industry Exporters’ Association
(OİB).
With $29 billion at the end of this year, the
sector aims to get closer to the three-year
pre-pandemic period annual average, OİB
said in a press release on Dec. 5.
However, automotive exports sank 6
percent year on year to $2.5 billion.
Despite the contraction, the automotive
sector’s exports were above the 11-month
average of $2.4 billion in November, OİB
Head Baran Çelik said.
“While auto supply industry exports
jumped in double digits, exports of
passenger cars and goods transport motor
vehicles declined in double digits. We also
recorded double-digit growths in exports
to countries such as Germany, the United
States and Egypt,” he added.
In the three years before the pandemic
crashed the global supply chains at the
beginning of 2020, the average of Turkey’s
automotive exports was $30 billion
annually.
“In 2020, our exports slipped to $25.5
billion due to the pandemic. We are
planning to end this year with $29 billion in
exports,” Çelik said.
Turkish automotive exports’ share in the
country’s overall exports is around 11.8
percent, according to his remarks.
Germany, Turkey’s top exports market,
imported automotive products of $392
million in November, up 12 percent year
on year. In the same month, automotive
exports to Russia, Egypt, Romania
and the United States jumped by 44
percent, 31 percent, 25 percent and 11
percent, respectively. On the other hand,
automotive exports to France dropped by
11 percent to $291 million and exports
to the United Kingdom contracted by 16
percent to $223 million. Exports to Italy,
Slovenia, Belgium, the Netherlands and
Sweden also decreased in double digits
year on year in November.
In the first 11 months of this year,
automotive exports to Russia soared 50
percent to $642.7 million, while exports
to the United Kingdom ($2.7 billion) and
United States ($1.1 billion) jumped by 42
percent and 31 percent, respectively.(HH)
Domestic market narrowing
Affected by semiconductor shortage,
depreciation in the value of the Turkish
Lira and complicated special consumption
tax base system, passenger car and light
commercial vehicle sales dropped by 24.9
percent to 60,216 units in November,
according to Automotive Distributors
Association (ODD).
In the same month, passenger car sales
declined by 33.2 percent to 42,982, while
light commercial vehicle sales increased by
9.2 percent to 17,234. Compared to the 10-
year November sales average, passenger
car and light commercial vehicle sales
narrowed by 24.7 percent this year.
March 2022 38

Investments in
Turkey’s rapid
charging stations
for EVs gain pace
As transitioning to electric vehicles gains
pace around the world and Turkey plans to
put its domestic electric car on the market
soon, investments regarding the necessary
infrastructure, namely charging stations,
are also on the rise.
Turan Şakacı, senior manager at the
Istanbul-based engineering firm Üçay
Group, told Anadolu Agency that the
company aims to increase the number of
rapid electric charging stations with an
investment of $1 million (TL 13.56 million)
initially this year.
“We have the technical infrastructure,
service support, product and opportunity
that will enable the establishment of
stations all over Turkey, starting with our
big cities,” he said.
Şakacı stated that they have completed the
necessary preparations for the expansion
of electric charging stations throughout
the country, following the agreement they
signed with Eaton, a global manufacturer
of electricity and industrial power
management systems, in October.
Pointing out that with this agreement Üçay
Group has become the sole authority in
the sale and service of charging stations
for electric vehicles, Şakacı said that with
the unveiling of the country’s first fully
electric and domestic vehicle, Togg, the
infrastructure of fast charging stations
came to the fore. He noted that they have
56 branches and hundreds of dealers in
81 provinces of Turkey, adding that Turkey
does not need foreign resources for its
electric charging station investments.
“We see that foreign investors see the
electric vehicle potential in Turkey and are
preparing to invest in it. However, Turkey
uses its own resources to invest in the
country’s electric charging stations,” he
said. Electric vehicle giant Tesla included
Turkish city names on its website for Tesla
Supercharger stations with the phrase
“coming soon.”
The cities currently include Istanbul, the
capital Ankara, southern Antalya, the
western cities of Aydın, Balıkesir and Izmir,
the northwestern cities of Bursa, Edirne
and Sakarya, and central Konya. Charging
stations will be installed at points that
everyone can easily access, such as main
roads or shopping malls.
Turkey’s Automobile Joint Venture
Group, known as Togg, is the consortium
developing the country’s indigenous car
and will launch its first mass-produced
vehicle, an all-electric SUV, by the end
of 2022. Togg was most recently named
among one of the top 20 brands that
participated at the 2022 Consumer
Electronics Show (CES) by the U.S.-based
Exhibitor magazine.
March 2022 40

Turkish factory
output beats
forecasts to
jump 14.4%
Turkey’s industrial production jumped more
than expected in December and registered
the highest rate of growth in six months,
official data showed. The output surged
14.4% year-over-year in December, the
Turkish Statistical Institute (TurkStat) said,
rising for the 18th consecutive month in a
sustained burst of economic activity since
the lifting of coronavirus measures.
The reading exceeded forecasts of 11.2%
and 10.8% projected in Reuters and
Anadolu Agency (AA) polls, respectively.
The production remained strong despite
high volatility in the Turkish lira that month,
which deterred company and household
budgets and sent inflation soaring via
import prices.
Analysts expect jumps in utility prices and
scattered curbs to power use to weigh on
industrial production in January, after Iran
had cut gas flows to Turkey for up to 10
days due to a technical failure.
While the mining and quarrying sector
posted negative results, the manufacturing
industry and the electricity, gas, steam and
air conditioning supply indices were on the
positive side, the data showed.
The mining and quarrying sector index
dropped 1.4% year-over-year in December.
The manufacturing industry and the
electricity, gas, steam and air conditioning
supply indices were up 16.2% and 8%,
respectively, over the same period.
Enver Erkan, a chief economist at Istanbulbased
Tera Yatırım, said they expect a loss
of momentum in January.
“Iran’s cessation of gas supply and
consequent electricity and gas cuts in the
industry led to suppression of production.
March 2022 42

We take into account that we will see the
effect of this in the January data. Due to
supply problems, the upward trend in raw
material prices continues,” Erkan said in a
note.
In April of 2020, output plummeted
more than 31% in the face of the initial
coronavirus wave, but it has since made a
strong recovery since subsequent measures
largely skirted the manufacturing sector. All
virus measures were lifted in July last year.
Turkey’s economy is expected to have
grown around 10% in 2021, rebounding
powerfully after a sharp slowdown a year
earlier driven by COVID-19 restrictions.
Erkan said the latest data reaffirmed the
double-digit growth in 2021.
“Our growth expectation for 2021 is 10.8%.
In 2022, we will consider factors such as
the developments in the exchange rate, the
economic slowdown caused by the global
supply shortage, and the problems that the
omicron variant may cause, especially in
our export partners,” he said.
“We expect the growth to normalize
towards the 4% band this year.”
Month-over-month, industrial output
rose 1.6% in December on a calendar and
seasonally adjusted basis, TurkStat said.
The mining and quarrying sector index
dropped by 3.4% month-over-month.
The manufacturing, and gas, steam and
air conditioning supply indices were up
by 1.8% and 0.6%, respectively, versus
November.
The Turkish government has been
endorsing a model based on lower
borrowing costs, which it says will boost
production, employment and exports,
and also eventually help Turkey solve the
chronic current account deficit problem
and contribute to stabilizing the Turkish
lira.
To support the drive, Turkey’s central bank
has slashed its interest rates by 500 basis
points since September to 14%, before
pausing the easing cycle.
The lira had weakened 44% last year
and hit a record low of 18.4 against the
United States dollar in late December but
rebounded after President Recep Tayyip
Erdoğan’s announcement of a scheme
to boost lira deposits by protecting them
against depreciation.
The initiative had helped the lira rally
sharply to just over 10 and then settle at
current levels just under 14 to the dollar.
The decline in the lira stoked prices and
caused inflation to jump to 48.7% in
January.
A central bank survey of market
participants’ expectations showed
consumer price inflation was seen ending
2022 at 34.06%, up from 29.755 in the
previous survey, with gross domestic
product (GDP) growth forecast to be 3.7%.
The lira, which has traded steadily so far
this year, was flat at 13.54 against the
dollar. The central bank survey showed it
was seen ending the year at 16.04, down
from the previous forecast of 16.13.
Separately, Turkey’s retail sales volume,
a marker of growing consumer spending,
surged 15.5% year-over-year in December,
TurkStat data showed, with all sub-indices
posting increases.
Non-food (except automotive fuel) sales
increased by 28.2% in December, compared
to the same month in 2020. Automotive
fuel sales were up by 2.8%, while that of
food, drinks and tobacco increased by 1.7%
over the same period.
Among non-food items, textile, clothing
and footwear sales rose the most, climbing
77.3% from December 2020, followed by
medical goods and cosmetics (16%) and
computers, books and telecommunications
equipment (13.1%). Sales by mail order and
the internet soared 34.1% year-over-year in
December.
On a monthly basis, the retail sales volume
dropped by 2.7% over the month.
Separate TurkStat data showed that the
economy posted an 82.4% annual jump in
total turnover in December.
The biggest change came in industry, which
shot up 101.4% on an annual basis, the
institute said. The construction sector saw
an annual rise of 46.4%, while the services
and trade indices climbed by 82.9% and
77.6%, respectively. On a monthly basis,
the seasonally and calendar-adjusted total
turnover index was up 12.8% in December.
“Industry increased by 20.1%, trade
increased by 11.0%, services increased
by 7.6% and construction decreased by
4.6% on monthly basis in December 2021,”
TurkStat said.
43 March 2022

Hybrid cars
outsell diesel in
Europe for first
time
Hybrid cars, which operate on both an
internal combustion engine and an electric
motor, outsold diesel vehicles in Europe
for the first time in 2021, albeit by just 48
vehicles, data showed.
One in 11 cars sold were battery-electric,
the data from the European Automobile
Manufacturers’ Association (ACEA) showed,
totaling just under 880,000 vehicles.
Self-charging hybrid cars contain a battery
charged by an internal combustion engine,
and generally can only drive a limited
distance on electric power.
Plug-in hybrids are powered primarily by a
battery charged externally and thus seen
as more environmentally friendly, but
are backed up by an internal combustion
engine, while battery-electric cars run on
the battery alone.
A total of 1,901,239 million self-charging
hybrid cars were registered in the European
Union throughout the year, a significant
jump from the 1.1 million registered in
2020.
Diesel registrations, which have cratered
since the Dieselgate scandal in 2015, fell
by a third from last year’s 2.77 million to
1,901,191. New government subsidies for
low- or zero-emission vehicles that took
effect as part of the pandemic recovery
program trebled sales of plug-in hybrid
and battery-electric vehicle sales in 2020
to over 1 million, with a roughly even split
between the two types.
The plug-in hybrids are seen by carmakers
as a technology of transition to fullyelectric
cars, but their green credentials
have been criticized by environmental
groups as studies have shown drivers
rely more than hoped on the internal
combustion engine over the battery,
pushing up the vehicles’ emissions.
In 2021, battery-electric vehicle sales grew
by 63.1% to nearly 878,500 cars, the data
showed, while plug-in hybrid sales grew
70.7% to nearly 867,100.
Petrol remained the most common fuel
type but by a lower margin than last year,
constituting 40% of new registrations,
down from 48% in 2020
March 2022 46

Turkey’s car
brand Togg
launches first
office abroad in
Germany
Togg CEO Mehmet Gürcan Karakaş
Turkey’s first homegrown automobile
brand, Togg, has made its initial foray into
the European market by opening its first
representative office abroad in Germany.
Togg is due to launch mass production
later this year. Togg CEO Mehmet Gürcan
Karakaş in August last year said the
company would start sales with Germany,
followed by other markets in Europe.
Germany aims to have at least 15 million
electric cars on the roads by 2030 in its
shift towards climate neutrality, according
to a coalition agreement of the country’s
new government.
Turkey’s Automobile Joint Venture
Group, known as Togg, is the consortium
developing the country’s indigenous car.
Due to launch its first mass-produced
vehicle, an all-electric SUV, by the end of
2022, Togg opened its first foreign office in
Stuttgart, according to a report by public
broadcaster TRT Haber.
The SUV in the C-segment will be launched
in the first quarter of 2023 and will be the
first electric sport utility vehicle produced
in continental Europe by a nontraditional
manufacturer, Karakaş said earlier this
month.
“I believe that if attention is paid to its
quality, both Germans and the Turks will
be buying it,” said Durmuş Yılmaz, an
automotive parts supplier in Germany.
“We see that the Germans pay close
attention to everything. If we do the same,
it depends on the quality, discipline; when
they buy it, they will realize that it is a good
car,” Yılmaz told TRT Haber.
The brand aims to produce 1 million
vehicles across five different segments by
2030.
Togg was named among one of the top
20 brands that participated at the 2022
Consumer Electronics Show (CES) by the
U.S.-based Exhibitor magazine.
Togg showed off the “Transition Concept
Smart Device,” an all-electric fastback
concept car during one of the world’s
largest technology and gadget fairs, held in
Las Vegas earlier this month.
It was not immediately clear if the fastback
is intended to replace the previously seen
compact sedan or was produced just
for CES. Togg was launched on June 25,
2018. President Recep Tayyip Erdoğan, in
December 2019, unveiled prototypes for
the SUV and a sedan, both fully electric and
C-segment models.
Togg said it would produce five different
models – an SUV, sedan, C-hatchback,
B-SUV and B-MPV – through 2030. Mass
production of the SUV will begin by the end
of this year, with the sedan to follow.
Construction of Togg’s engineering, design
and production facilities began in mid-
2020. Built on an area of 1.2 million square
meters (12.9 million square feet) in the
Gemlik district of northwestern Bursa
province, the facility is scheduled to be
complete in the coming months.
Togg has opted for advanced lithium-ion
battery technology company Farasis as
its business partner for the battery. The
homegrown car can reach 80% charge in
under 30 minutes with fast charging. It will
have a range of between 300 kilometers to
500 kilometers (186 miles to 310 miles).
March 2022 48

Turkey supports
foreign firms as
global supply
crunch bites
There is a silver lining to the global supply
chain crunch for Turkey: The country is
becoming an attractive alternative at the
gates of Europe for foreign firms.
Turkey is seizing its geographic advantage
to woo companies as the skyrocketing
cost of sea freight and pandemic-related
disruptions to supply chains push some
European companies to reduce their
dependence on Asia.
President Recep Tayyip Erdoğan has
promoted a new slogan for exports: “Made
in Turkiye,” marketing products in Turkish
instead of the internationally known “Made
in Turkey.”
The country’s exports reached a record
$225.4 billion (TL 3.07 trillion) last year,
with a target of $300 billion set for 2023.
“Many international companies are taking
action to supply more from Turkey,”
Burak Dağlıoğlu, head of the presidency’s
investment office, told Agence France-
Presse (AFP).
He said the country offers automakers
or textile companies a “competitive
talent pool, sophisticated industrial
competencies, well-developed services
industries, perfect geographic location and
state-of-the-art logistic infrastructure.”
Furniture retail company Ikea announced
last year it wanted to move part of its
production to Turkey.
The Italian clothing group Benetton told
AFP it wants to “increase its production
volumes in countries closer to Europe,
including Turkey.”
Peter Wolters, vice-chairperson of
the Netherlands-Turkey Chamber of
Commerce, said the business group
received “requests from the household and
garden sector, textile and fashion and also
yacht building industry who search for new
partners in Turkey.”
Japanese electronics contractor Kaga
Electronics is going to build a factory in
Turkey, shifting a portion of the production
from China and Southeast Asia, it also said
back in December.
The company said it hopes to take
advantage of Turkey’s strategic location and
expand the Middle East and Europe orders.
“Kaga hopes to leverage its new production
base to win orders related to auto-related
parts as well,” it said.
It has become extremely expensive to ship
goods from Asia.
As a result of container shortages, the cost
of freight between China and northern
Europe has increased ninefold since
February 2020, according to the Freightos
Baltic Index.
While a cargo ship can take weeks to travel
from Asia to Europe, Turkey is only three
days away by truck.
A study by the McKinsey consulting group
published in November placed Turkey in
the third position among countries with the
best potential for textile supplies by 2025,
behind Bangladesh and Vietnam but ahead
of Indonesia and China.
“Apparel companies are also looking to
change their sourcing-country mix ...
to secure the supply chain,” the global
report’s authors wrote.
The report said Turkey offers “cheaper
production costs due to a declining lira.”
The lira has fallen by 44% against the dollar
since 2021.
Erdoğan has been endorsing a model based
on lower borrowing costs, which he says
will boost production, employment and
exports, and also eventually help Turkey
solve its chronic current account deficit
problem and contribute to stabilizing the
Turkish lira.
The declining lira is, however, problematic
for several industries due to the country’s
dependence on imports for energy and raw
materials.
“It’s not like Russia, for example, which
has extensive raw materials,” said Roger
Kelly, leading regional economist covering
Turkey and Russia at the European Bank for
Reconstruction and Development (EBRD).
He said Turkey also faces competition from
countries within the European Union.
“I don’t think we should ignore those
countries in southeast Europe like Romania
or Bulgaria, which are actually in the EU –
which helps them to a certain degree – and
also have low production costs and strong
production bases as well.”
March 2022 52

S. Korea weighs
penalizing Tesla
for exaggerating
battery features
South Korea’s antitrust watchdog is
considering imposing penalties against the
United States’ electric car giant Tesla over
its findings the company exaggerated the
specifications of its batteries, according to
an official.
The Korea Fair Trade Commission (KFTC)
had sent a report to the electric vehicle
(EV) maker stating that it had exaggerated
the mileage of some of its models,
including Model 3, in violation of the Act
on Fair Labeling and Advertising, the official
said.
“We plan to hold a general meeting to
review and determine the extent to which
the automaker has violated the law and
decide the level of sanctions,” an official
at the KFTC told Reuters, asking not to be
named due to the sensitivity of the matter.
Tesla, on its website, says its Model 3 can
travel 528 kilometers (328 miles) on a
single charge. The KFTC says however that
the range may fall short of that should the
temperature drop below freezing.
Analysts said most electric vehicles could
generally experience some loss of driving
range in cold weather. Separately, the
KFTC is also weighing whether to impose
penalties against Tesla for not refunding
deposits to customers who canceled online
purchases before their vehicle orders were
put in place for release.
In South Korea, Tesla requires customers to
pay a deposit of 100,000 won ($84) when
purchasing Tesla cars online, but deposits
were not refunded upon cancellations of
orders by customers, according to Yonhap
news agency.
March 2022 54

Chip shortage
continues to hamper
VW car production
Germany’s leading car manufacturer Volkswagen
continues to suffer from the global shortage of
semiconductors, with a senior employee representative
calling the cut in working hours “hard to bear.”
The possible prolonged cut in shifts from April onward
will be limited to the main plant in Wolfsburg for the
time being, but the works council is applying pressure
for the company to improve its chip purchasing.
“We have had to phase out temporary work at almost
all locations and have thus already made changes at
the turn of the year,” human resources board member
Gunnar Kilian told Deutsche Presse-Agentur (dpa).
Plants like the one in the north-western city of Emden
on the Dutch border are already geared to two-shift
instead of three-shift operation.
Daniela Cavallo, head of the works council, emphasized:
“We have full order books. But the semiconductors are
missing. It doesn’t add up, and it’s hard to bear.”
At the Wolfsburg headquarters, VW is cutting night
shifts on three out of four important lines in the spring.
Last year, 330,000 fewer vehicles were built in
Wolfsburg, meaning just under 400,000 cars were
produced, a low since 1958.
In addition to financial compensation for the loss of shift
bonuses, the employee representatives are demanding
a reorganization of the procurement of central supplier
parts.
According to Cavallo, some companies are further ahead
than VW in securing sufficient quantities.
“Certainly, a lot has already happened. We have the
task force on semiconductor supply. But it’s also about
building strategic, long-term supply management – not
just for microchips, by the way.”
March 2022 55

SABIC study on rear quarter windows
underscores LEXANTM resin’s value
SABIC, a global leader in the chemical
industry, announced the results of a
recent design study on automotive rear
quarter windows that explored the distinct
advantages of LEXANTM polycarbonate
(PC) resins for developing differentiated
styling, consolidating components,
integrating functions and enhancing
aerodynamics. These concepts reveal
multiple new opportunities to significantly
expand design freedom, control costs and
reduce weight by replacing traditional glass
with transparent, impact-resistant LEXAN
resins. The detailed study, conducted by
SABIC designers and engineers, builds
on the company’s deep, decades- long
history in automotive glazing technology.
In addition to rear quarter windows,
the SABIC team produced stylish design
concepts for rear side windows. The data
is available to support the feasibility of
these designs, all of which can use wellestablished
processing methods and
secondary operations.
“As industry trends such as vehicle
electrification continue to evolve, SABIC
is seeing major new opportunities for our
materials to radically change automotive
styling, while simultaneously addressing
the longstanding challenges of weight-out,
cost-out and sustainability,” said Abdullah
Al-Otaibi, general manager, ETP & Market
Solutions, SABIC. “The latest concepts
from our study aim to inspire exciting new
window designs that address these needs
by combining beautiful aesthetics with
practical performance and established
processing methods. SABIC’s LEXAN resins
have a proven track record in automotive
glazing applications, and we continue to
work with our customers to proactively
deliver cutting-edge ideas and innovations
that can benefit OEMs, tier suppliers and
consumers alike.”
Wraparounds, Panel Swaps, Integrated
Lighting and More
Many of the new SABIC concepts feature
LEXAN resin used in curved wraparounds
that seamlessly flow into other portions
of the vehicle, while integrating rear
lighting, door latches, D-pillar trim and
even sunroofs. Integrations and complex
curvatures like these typically cannot be
achieved with glass. Part and function
integrations can enhance aerodynamics to
improve fuel economy and electric vehicle
(EV) battery efficiency and range. They also
create a highly streamlined look for the
vehicle.
One rear quarter window concept (1A)
integrates an airflow separator feature
for increased aerodynamic efficiency and
incorporates styling strokes to add visual
appeal. Another concept (1D) integrates
a backlit EV charge level indicator within
the window. Alternatively, the rear quarter
window could integrate a different or more
distinctive type of indicator or an animated
welcome light display.
In another case (1F), SABIC created a rear
quarter window with an expressive 3D
curvature that smoothly wraps around
the D-pillar, into the sunroof and down
the back side. This concept combines the
window with the taillights. A variation
(1H) on this rear quarter window design
features a raised panel covering the D-pillar
area. This window enhancement can be
created in the same color as the body to
establish a floating-pillar effect, and can
even be swapped by the consumer for a
different panel if a special color or effect is
desired. The new SABIC study also includes
innovative design concepts for the rear
side window. For example, one unique
design (2D) features a window and a door
latch that are mated to a trim insert in the
D-pillar. The result is a sleek, aerodynamic
design.
Clear Advantages over Glass
Although glass has dominated the
automotive glazing sector for years, due
mainly to its low cost for simple curved
components, disruptors such as EVs are
prompting the industry to re-imagine
vehicle design. In the process, traditional
materials like glass have come under
scrutiny and are increasingly being
replaced by safer, lighter, higher performing
engineered plastics. SABIC’s PC glazing
offers exceptional advantages over glass,
beginning with significantly lighter weight.
With PC, designers gain the freedom to
create curved forms, sharp angles and
other configurations that cannot be
achieved with glass. Proven technologies
such as 2K and 3K injection molding
can be used to produce these shapes.
SABIC has invested in the development
of a 3K injection molded sunroof to build
competencies in molding large transparent
and semi-transparent parts.
Polycarbonate is also much easier to
recycle than glass, which faces roadblocks
due to its high transportation costs,
potential for contaminating single-stream
recycled content with broken fragments,
and shrinking end markets for the material,
particularly automotive. SABIC is interested
in pursuing supply chain collaboration with
industry partners to explore the chemical
upcycling of PC materials used in rear
quarter windows and rear side windows.
March 2022 56

Autopromotec 2022: international promotion has
kicked off in view of next year’s event
The strategic plan to achieve maximum
incoming attendance for the edition
scheduled on 25-28 May in Bologna has
been implemented: the aim is to involve,
with an innovative format, the entire world
of automotive after-sales at a global level
Attractiveness and business. These are
the keywords of the strategic plan for
international promotion developed
by Autopromotec for the next edition
March 2022 58

scheduled on 25-28 May 2022 in Bologna.
The organisers of the biennial international
automotive equipment and aftermarket
exhibition have launched a series of
large-scale promotional activities with the
aim of attracting the largest number of
buyers, decision-makers and stakeholders
at an international level. On the one
hand, thanks to contributions from the
“Strategic Fund for Made in Italy” of the
Ministry of Foreign Affairs and International
Cooperation and the ICE Agency (Italian
trade & investment agency), Autopromotec
will work to bring in operators from distant
and high-potential markets. On the other
hand, through its network of agents and
representatives, the organisers are working
to welcome, during the next edition of the
exhibition, groups of professional operators
from numerous markets in Central and
Eastern Europe, North Africa, the Middle
East and South America. The aim is to
offer the greatest number of business
opportunities to exhibiting companies,
but also to put buyers in touch with all
the product innovations, which in many
cases will be previewed at Autopromotec
2022, the first international showcase for
the industry after the long pause imposed
by the pandemic. Particular attention has
also been paid to foreign associations,
for which the organisers of the event are
working on a calendar of workshops on
the main themes and challenges of the
automotive aftermarket sector. Attendees
at the next edition will be faced with an
innovative format that will allow them to
learn about innovations and new products,
meet both their regular suppliers and find
new ones, access services and participate
in conferences and seminars both in person
and virtually. The trend that is projected
is that of an even more specialised edition
with a strong component of professional
visitors with even higher specific qualities.
Absolute priority, therefore, will be given
to face-to-face activities. However, they
will be complemented with a series of
hybrid activities, should the contingent
pandemic situation require it. Over the
years, Autopromotec has confirmed its
international vocation, reaching remarkable
figures: during the 2019 edition, 119,108
professional operators from 136 countries
visited Autopromotec, a figure that highlights
the great effort made by the organisers in
terms of international promotion in the last
editions of the Exhibition. The attendance
percentages of foreign professional operators
have in fact outlined a map of reference
market areas that sees, in the first line,
Europe (with 37%), Asia (24%), Americas
(18%) and Africa (15%), followed by Oceania
(6%). This is also the result of agreements
that Autopromotec has made with
institutions, in particular the Emilia-Romagna
Region, the Ministry of Foreign Affairs and
International Cooperation and the ICE
Agency (Italian trade & investment agency),
which support the event’s initiatives aimed at
international promotion and the incoming of
foreign operators.
59 March 2022

Katmerciler
to Deliver
118 Units of
Hızır Vehicles
Equipped
with Allison
Transmissions to
Kenya
Katmerciler won Kenya’s military vehicle procurement tender and
will start the delivery of Hızır vehicles equipped with Allison fully
automatic transmissions in 2022.
Allison Transmission, a leading designer
and manufacturer of conventional and
electrified vehicle propulsion solutions
for tactical wheeled and tracked defense
vehicles, and medium- and heavy-duty
commercial vehicles, and Katmerciler,
the Turkish vehicle manufacturer which is
aspired in defense industries from all over
the world, will reinforce 118 Hızır vehicles
with Allison fully automatic transmissions
which will be delivered to Kenya’s Ministry
of Defense beginning in 2022. Katmerciler
recently won the military vehicle tender
organized in line with Kenya’s military
needs. The final delivery of the vehicles is
to be completed in 2023.
The Hızır 4x4 Tactical Wheeled Armoured
Vehicle is designed and optimized for high
performance under extreme operational
conditions in rural and urban areas with
a nine personnel capacity. Katmerciler’s
Hızır vehicle is exceptionally reinforced and
has a high level of ballistic and landmine
protection, developed according to NATO
standards. Hızır vehicles come equipped
with Allison 3200 Specialty SeriesTM fully
automatic transmissions as standard and
are used effectively in Turkey’s local and
international operations. While the vehicle
is in high demand by other countries due
to its competitive features and successful
performance in operations, Kenya has
signed one of the biggest vehicle deliveries.
The Katmerciler Hızır 4x4 is agile,
dynamic, versatile, cost effective and
maintenance friendly and is available in
various configurations such as command
control vehicle, CBRN vehicle, weapon
carrier,ambulance vehicle, border security
vehicle and reconnaissance vehicle.
Allison’s patented torque converter ensures
the extremely high torque is transferred
to the driveline gradually and supports the
efficiency of the Katmerciler Hızır in field
operations in all applications, road and
terrain conditions.
Allison transmissions add value to military
operations worldwide with by means of
various advantages such as shifting at the
right time automatically to provide greater
protection for the driveline and ensure
faster acceleration, better control, and
better maneuverability.
Allison’s torque converter enables less
wear and tear on the driveline and
conforms with Katmerciler’s lower repair
costs strategy for its vehicles. Despite
challenging operation conditions, any
requirement for maintenance and repair
costs are reduced.
“Allison Transmission has been providing
propulsion solutions for military vehicles
for nearly 80 years and stands out as the
standard equipment of many vehicles
serving in the defense industry, said Berk
Gönenç, Allison Transmission Turkey Sales
Manager. “More than 600,000 military
vehicles globally use Allison fully automatic
transmissions for their field operations.”
“Katmerciler is one of the key vehicle
manufacturers in Turkey’s defense industry
and its vehicles attract great attention from
different areas of the world,” said Gönenç.
“Therefore, we will keep on supporting
the high performance and success of
these vehicles equipped with Allison fully
automatic transmissions as they go about
their demanding work.”
March 2022 62

Morgan shares early design sketches
of all-new three-wheeled model
The Morgan Motor Company has
showcased the design direction of its allnew
three-wheeled model with the release
of a series of never-before-seen design
sketches. Taken from the drawing boards
of Morgan’s design team, the illustrations
demonstrate the aesthetic intent of the
new model, as well as the inspirations that
underpin it.
No single sketch in isolation reveals
the exact look of the new model, yet in
culmination they demonstrate some of the
key design features that will be revealed in
full when the new three-wheeled model
is launched in 2022. Sketches show a
technical front end trailed by a fluid form,
the vehicle ‘visually towed’ by its leading
front wheels. The visual mass resides
behind the centre line of the front wheels
and never on top of them, a theme that
has remained prevalent from the earliest
sketches. Further design tenets include the
celebration of mechanical honestly and
the communication of function through
design, hallmarks of previous Morgan three
wheelers.
As demonstrated in the sketches, the
design of the new model is bold and
eccentric, taking inspiration from midcentury
jet planes, motorcycles, historic
Morgan models and modern industrial
product design — images of which
adorn the walls of Morgan’s design and
engineering offices.
Complementing this personality will be
an extensive list of specification items
and accessories available from the outset,
making it Morgan’s most configurable
vehicle ever. The model can be tailored to
assume multiple identities and cater for
every adventure.
Steve Morris, Chairman and CEO of
Morgan Motor Company, said: “Morgan
was founded on the production of threewheeled
cars, and when the 3 Wheeler
was re-introduced in 2011 it became a firm
pillar of the company’s product range. We
recognise the importance of evolving this
bloodline and continuing to provide our
growing community of enthusiasts with
new, exciting, and unforgettable motoring
experiences. Creating the all-new threewheeled
model has been a ground-up
project, throughout which safety, durability,
and character have been at the forefront
of our focus. It has been an absolute joy
seeing the new vehicle take shape, and we
cannot wait to present it to the world next
year, continuing the legacy of the model.
Jonathan Wells, Head of Design, Morgan
Motor Company, said: “Morgan cars are
often described as ‘analogue’, despite
exhibiting industry standard technologies.
We believe that in a world of technology,
making art of a car’s mechanical elements
serves as an antidote to typical vehicle
design. Throughout design studies it
became quickly apparent that the vehicle
must celebrate the model’s mechanical
honesty. The sketches demonstrate
how these will form a focal point of the
new vehicle. The ground-up design is
simultaneously a reflection of Morgan’s rich
past, relevant to the present, and provides
a firm vision of Morgan’s design future.”
The illustrations shown today follow
the previous information released in
September, confirming the car’s all-new
design, defined by significant engineering
enhancements and a spirit of adventure.
The model will be powered by an internal
combustion engine at launch, specifically
an inline three-cylinder naturally aspirated
engine from Ford, continuing Morgan’s
relationship with Ford which began in
1933.
March 2022 66

Panda Auto Textile products will be all over the world
Panda Seat Covers will bring all the products of textile group, which drivers dream
of for their own vehicles, to consumers.
Panda Seat Covers, which has been
producing seat covers for automobiles for
many years, has gone about to produce
all the products that its customers need
in automobile textiles. The brand, which
currently has 4 warehouses in different
countries in order to eliminate the logistics
problem when sending products abroad,
will increase this number to 10 by the
end of March. Panda Seat Covers General
Manager Orhan Ebem stating that they
are the best brand of Turkey in terms of
production, R&D and investment, stated
that they will continue production in an
area of 10,000 square meters with their
new production facility and produce the
highest quality auto textile products.
++First of all, can we hear from you
about the process of your brand from its
establishment to the present?
Panda Seat Covers is an international
brand focused on auto textile production
since 1986. Our goal is to become a
solution partner of the companies we
work with by working together. We are
aiming to maintain the market leadership
by combining technology and aesthetic
understanding in our products. For this,
we have conducted serious research in
the international arena in the last 10
years. How can we optimize quality? What
kind of products does Europe use? We
did research on questions like those. We
started to take returns from that in a short
time.
What are the features of your
products? What materials do you use
while producing auto covers?
We are using special products such as
leather, velvet, linen, and jacquard and
foal hair in production. The leathers we
use are easy to clean and long lasting. It is
waterproof and liquid-proof, fully wrapping
the original seats and protecting them in
first-class quality. Our velvet fabrics made
of cotton make a silky touch with a special
weaving technique. The product makes you
feel special with its soft and comfortable
structure. It is the first choice of our
customers who want to make a luxury
perception in their vehicle. Linen is a very
strong fiber. It is brighter than cotton fiber
and has an excellent resistance to heat.
March 2022 70

Thanks to its hard structure, it provides
long-term use. It does not sweat or stretch.
Jacquard fabric is a type of fabric made
with patterns obtained by weaving threads
on a special loom. Its source is cotton and
it is the most preferred type of fabric for
vehicle manufacturers in car seat cover
upholstery. Because of its cotton structure,
it does not sweat and shows long-term
durability. Our foal fleece fabrics, which
are made of cotton, are a high quality
and thick-structured product due to the
density of weaving. It has a unique texture.
It is highly resistant to wear and tear. In
addition, it does not sweat, has dirt and
stain-proof properties.
What kind of innovations have you
brought to this sector as Panda Seat
Covers?
Our industry has always remained in the
status we call under the counter. We
opened the first factory in this sector in
Düzce. We took care to ensure that the
production is of maximum quality by
giving trainings to our employees there. It
is because, when you export, the brands
abroad are looking at the documents you
have such as ISO and Airbag. It was difficult
to do this in Turkey. It is because we started
to produce in an unconventional way. We
have developed our machinery purchases
in accordance with these standards. As a
result, we started to sell to countries such
as Romania, Moldova, Russia, Ukraine and
Belarus.
What other work do you have
regarding export?
Beside these countries, we started to gain
returns abroad by selling to Germany 4
years ago. We saw that there is a serious
trailer market there. We have achieved
positive results by starting production in this
segment as well.
For the American market, we sent a team
to examine the work done there. We saw
that there was a virgin market here, and
as a result of our work, we agreed with a
company and started to send our standard
products there. We both send truck covers
here by making an agreement with a foreign
company, and we also deliver our products
to the American market via Poland.
71 March 2022

So, how is this situation in the
domestic market?
We also made researches to see how we
can deliver our products directly to our
customers in the domestic market. Because
the product we sell for 600 TL goes up to
1500 TL until it reaches the customer. For
this, we have activated our E-Commerce
channel. Apart from our own E-Commerce
site, we also took our place in all of the
market places. In fact, we broke a record
by reaching a turnover of 2 million in a
short time like 8 months in a market place
in 2020. As a result of our efforts, we have
reached 1600 different sales points. We
made a selection based on this figure, and
now our products are being sold at around
800 sales points on average. We have a
field team regularly visiting these outlets
and evaluating customer feedback. We will
continue our efforts to deliver problem-free
and quality products to end consumers.
Could you give information about your
production facilities? Do you have
R&D studies?
We are using 2500 different molds. We are
the only company carrying out R&D and
P&D studies in this sector in Turkey. We
allocate 25% of our turnover only to these
activities. We produce 22 thousand new
products every month. We bought a new
machine from Italy for my new products.
In this way, decorative stitches began to
take place in our products. Customers can
already design their own covers on the
internet with the products and colors they
want.
March 2022 72

What are your new investments and
goals for the upcoming period?
First of all, we are starting to produce a
new series for women. We have designed
22 new products just for this catalogue. We
will have different products such as stoned,
digitally printed and knitted. At the end of
March, we will also invest in the production
of steering wheel covers, pillows and
mats for the truck group. Our concern is
to produce more various products. Now
we want to be known as Panda Auto
Textile, not just Panda Seat Covers. We will
produce anything that people dream of for
their vehicles. In addition, we will establish
new warehouses in order to increase
our logistics power in the coming period.
Currently, we have 1 warehouse each in
Germany and England, and 2 warehouses
in Iraq. In addition to these, we will
increase this number to 10 by putting
into service 3 warehouses in Europe and
1 warehouse each in America, Dubai and
Ukraine as of the end of March. Especially
countries like Saudi Arabia and Qatar love
the covers. We will turn this demand into
an opportunity with quality products.
We currently have a production site
of 4,600 square meters. We will start
production in the entire building we are
in this month. As a result, we will have a
production facility of 10,000 square meters
in the center of Istanbul.
73 March 2022

Nissan commits
$17.6B spending
for electric cars
over 5 years
Japanese carmaker Nissan will spend 2 trillion yen ($17.59 billion) over the next five years to accelerate
vehicle electrification, the company announced, aiming to catch up with rivals in one of the fastest growth
areas for the automobile industry.
This is the first time Japan’s No.3
automaker, one of the world’s first massmarket
electric vehicle (EV) makers with
its Leaf model more than a decade ago, is
unveiling a comprehensive electrification
plan.
Nissan will be spending twice as much as
it did in the previous 10 years for a share
of the EV market as rivals, including Toyota
and newer entrants such as Tesla, move
ahead with their electric-car plans.
Nissan said it will introduce 23 electrified
vehicles by 2030, including 15 electric
vehicles and wants to reduce lithium-ion
battery costs by 65% within eight years. It
also plans to introduce potentially gamechanging
all solid-state batteries by March
2029.
Those commitments, Chief Executive
Makoto Uchida said, would make EVs
affordable to more drivers.
“We will advance our effort to democratize
electrification,” he said in an online
presentation.
Some analysts were unimpressed with
Nissan’s plan, noting it was already behind
rivals in the electrification game.
Masayuki Otani, senior analyst at Securities
Japan Ltd, also said auto stocks were falling
because of market concerns about a new
coronavirus variant and the impact it could
have on production plans.
“Nissan’s long-term vision comes at a time
when the market is perhaps not receptive
to it. It can be said that it represents a huge
increase in investment, it feels cautious,”
he said.
Shares of Nissan fell as much as 5.1%,
underperforming its major rivals. They
were down 3.8% in afternoon trading.
Although still only a small portion of
vehicles on the road, global electric car
registrations in 2020 grew 41% even as the
overall car market contracted by almost a
sixth, according to the International Energy
Agency (IEA).
At the U.N. climate summit in Glasgow this
month, major carmakers, including General
Motors and Ford, signed a declaration that
committed them to phase out fossil fuel
vehicles by 2040.
Nissan, however, has not committed to
abandoning gasoline vehicles. It said on
half of its vehicles mix will be electrified
by 2030, including EVs and its e-Power
hybrids. As it readies to compete for the
growing demand for EVs, Nissan in July
pledged $1.4 billion with its Chinese
partner Envision AESC to build a giant
battery plant in Britain that will power
100,000 vehicles a year including a new
crossover model. Rivals, including Toyota,
which also declined to sign the Glasgow
pledge, are also ramping up their battery
production. The world’s biggest automaker
by production volume plans to have 15
battery electric vehicle (BEV) models
globally by 2025 and will spend $13.5
billion by 2030 to develop cheaper, more
powerful EV batteries and their supply
system. Toyota said it is aiming to introduce
solid-state batteries by the mid-2020s.
Those power packs are attractive to
automakers because they are more energy
dense and less prone to catching fire than
liquid lithium-ion power packs. They are,
however, prone to cracking and currently
are more expensive to produce.
Nissan said its goal is to bring the cost
of solid-state batteries down to $75 per
kilowatt-hour (kWh) in 2028 and further
cut it to $65 per kWh in the future to make
them competitive with gasoline vehicles.
March 2022 76