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Automotive Exports September 2022

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1


SEB strengthens its position in the

automotive aftermarket industry

Suat Zeinaldin, General Manager of SEB Group of Companies and

Emir Zeinaldin, Deputy General Manager of the Company

While the rubber industry is rapidly gaining

momentum, SEB is responding to all these

demands with its new investments. Suat

Zeinaldin, General Manager of SEB Group

of Companies talks to Automotive Exports

Magazine about their activities.

Can you tell us about your company’s

story? What products do you have in

your product range?

Our first company was established in

Istanbul at the beginning of the 2000s, and

after that, our business life continues as a

group of companies with the investments

we made. We have been continuing our

activities in this sector for more than

20 years, and this adventure, which we

started with the import and export sectors,

continues with the production of rubber,

bellows, wedges, bushings and rubber

metal in our factory in Bursa as of 2015. In

2021, we provide support to our customers

thanks to our logistics company, which we

established with the decision we took after

the price policies that changed greatly with

the effect of the pandemic.

Our export company, with our product

range of more than 10000, has business

partnerships with more than 200

companies throughout Turkey, and we

mainly export products to the Middle East,

Europe and African countries according to

the demands of our customers.

In our factory, we closely follow and

benefit from today’s technology in the

dynamic and competitive environment of

the sector, without sacrificing quality with

our product range of more than 10000.

Our company, which aims to increase

the product diversity and continuous

development every year with the

investments made, continues its customer

satisfaction-oriented works, which is our

most important mission, by applying

management and production techniques

appropriate to our age.

You are in a good position in your

industry, rubber production. What are

your export targets in your sector for

the coming years?

When we look at the number of companies

in the rubber market, it is a highly

competitive sector. Thanks to today’s

technology, it is much easier to produce

than in the past. However, the challenge

is to create a high-quality, low-cost and

sustainable production plan. Although we

seem to be at the very beginning of the

road in terms of time compared to many

companies, we have come a long way in

a short time in the light of the right plan,

investment and strategies that we have

created with the vision, knowledge and

experience of our company’s founder Dr.

Saad Zainueldin. Thanks to the network

we have established in every province

of Turkey, you can see the products we

produce with our own patented brands on

the shelves of our customers.

We want to strengthen our international

relations thanks to the fairs we have

attended and will attend, and to reach

many continents thanks to our competitive

price policy, investments and quality of

products.

Which products do you export to?

Which regions do you have export

activities?

We mainly produce for FIAT, RENAULT,

PEUGEOT brand vehicles in our factory in

Bursa. The product group includes wedges,

bellows, bushings, rubber metal and

aluminum parts.

The region where we are strongest in the

Middle East countries is Egypt. In addition,

we export to Algeria, Morocco, Jordan and

Lebanon, as well as Germany-Portugal in

Europe, Nigeria, Ivory Coast, Ethiopia and

Comoros in the African continent.

Can you tell us about your fields of

activity? How do you work differently

from your competitors to increase

customer satisfaction?

As we mentioned before, we operate in

many fields. In the export sector, which is

our priority, we export 80% automotive

spare parts and the remaining 20% food,

machinery and raw materials. On the other

hand, we have slowed down our import

activities due to the high freight rates in

the last two years. For this reason, we also

operate in the field of logistics.

Customer satisfaction is a very important

issue for our company. As a result of our

statistical research, we deliver 99.8% of

our product shipments to our customers

on time, without sacrificing quality

and according to the given deadline.

Our number one priority is to keep our

product stocks as high as possible thanks

to the incoming demand and the correct

production plan, and to provide the best

service to our customers with on-time

shipments.

Do you have different goals in your

industry for the coming years? Do you

plan to invest in different areas of the

automotive industry?

In the coming years, we aim to follow

the technology closely and invest in

development and developing points. I can

say that the primary investment is moving

to a new production area. In this way, it is

among our plans to serve more customers

with a larger production pool. However, as

you know, we have to act cautiously due to

increasing costs and fluctuations in foreign

markets and economy.

September 2022 10


Apple’s self-driving car

effort stuck in low gear

Apple’s quest to produce a viable self-driving car

remains stalled despite years of work, with its

team plagued by setbacks as rivals race ahead, The

Information tech news website has reported.

Buzz surrounding a potential Apple car began some

eight years ago with the vehicles being touted as the

first new “big thing” from the company since its iconic

co-founder Steve Jobs died in October 2011.

However, self-driving Apple cars have had trouble on

streets near its Silicon Valley headquarters, bumping

curbs, straying from lanes, and almost hitting a jogger

legally crossing a road, The Information said, citing

interviews with people who worked on the project.

The article maintained that team troubles resulted

from ever-shifting goals and leadership, staff turnover,

and lack of faith in the project by high-ranking Apple

executives.

Apple chief Tim Cook early last year portrayed selfdriving

cars as an ideal match for the technology giant

during an interview released by the New York Times.

“An autonomous car is a robot and so there are a lot

of things you can do with autonomy; we will see what

Apple does,” Cook told journalist Kara Swisher’s “Sway”

podcast.

Cook hinted that an option could be for Apple to build

an autonomous-driving technology platform used by

automakers.

Apple first revealed its self-driving tech aspirations in

2016 and Cook has since then said he saw autonomous

driving systems as a “core technology” for the future.

Apple acknowledged last year that it trimmed its team

devoted to self-driving car technology but stressed that

it’s still in the race.

Most major auto manufacturers and many technology

groups are currently developing autonomous vehicles,

considered to be the future of the automobile, along

with electric power.

Less than a year ago, Waymo, the self-driving unit

at Google’s parent company Alphabet, expanded its

robotaxi service to riders in San Francisco in another

step toward fully autonomous ride-hailing.


Automotive industry gains momentum with DORA

What products do you have in your

brand’s product range?

As DORA SP, we produce water pumps,

water pump housings, release levers, oil

hand pumps and some more mechanical

parts for commercial vehicles. DORA

Industry produces hose crimping machines

with its own brand. TURKON produces

various parts in renewable energy and

automotive sector for other manufacturers.

There is an interesting story behind

Dora’s success as a reliable supplier

and professional business partner. Dora

representative Mehmet Fatih Sakallı

explained the details of the success

stories.

Could you mention about the history

of DORA?

Before 2007, my partners and I were

working in different companies. With

the encouragement of our friends, we

bought a secondhand CNC lathe and

started to produce some small parts.

At the beginning, it was very difficult

for us to manage it. Accounting, taxes,

social insurance, purchasing etc. were

all unfamiliar for us. We only knew how

to produce it because of that we had to

cope with many problems. But at the

same time the demand was unexpectedly

increasing. In a couple of years, we

bought second and third machines. We

moved to a bigger place. To be honest,

we did not expect that much to the favor

of us but we were always honored by

positive developments. After that we

decided to be selective on both products

and customers. Because it was very

uncontrolled growing and everything

could be upside down suddenly. Then

we specialized on some product groups.

Sustainability of both the products and

the customers became our priority as a

management principle. Afterwards our

field of activities still diversified but in

independent and more professional ways.

At present, as DORA CNC, DORA Industry,

DORA SP Automotive, DORA Construction

and TURKON we have been serving in

different fields.

What are the policies you have

determined to increase customer

satisfaction?

At the beginning we were not producing

only automotive parts. We produced

various mechanical parts or semi-products

to the companies serving in renewable

energy, agriculture and machinery sectors

as well. Most of our customers were local

companies that we know each other

before. Since they are also experienced

on production, their recommendations

were very helpful for us to improve the

product quality. That time, we realized

that the experiences of other producers

and the end users are very valuable for

us to improve ourselves. Because of that

we evaluate all the recommendations

from our customers, end users and our

colleagues.

Can you tell us about your supply

network and distribution channels?

For last 2 years we have been exporting

our products with our own brand. Now

we are directly exporting to Arabian

countries, European countries and African

countries. But our products are being

exported to nearly all over the world by

other distributers with various brands. We

do not have any local dealers yet but in a

couple of years we will have to make some

dealership agreements.

Do you consider investing in different

areas of the automotive industry?

We planned to gather a team to study

on the electronical parts of the vehicles

including the software and afterwards to

invest on it. But the pandemic and the

following economic crisis all over the world

delayed our program. But it still in our

program. We are just waiting for the right

time.

What would you like to add and

highlight in the interview?

Russian market is very important for us

because the quality of the products like

water pump or housing is much more

important due to the weather conditions.

As soon as the Russian suppliers and end

users use our products and satisfied about

quality, we hope that we will establish long

term relations with Russian companies.

September 2022 16


Monthly automotive aftermarket magazine

GROUP CHAIRMAN

H. FERRUH ISIK

PUBLISHER:

İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Managing Editor (Responsible)

Mehmet Söztutan

mehmet.soztutan@img.com.tr

Editor

Ali Erdem

ali.erdem@img.com.tr

EDİToR

Mehmet Soztutan, Editor-in-Chief

mehmet.soztutan@img.com.tr

Advertising Managers

Adem Saçın

+90 505 577 36 42

adem.sacin@img.com.tr

Enes Karadayı

enes.karadayi@img.com.tr

International Marketing Coordinator

Ayca Sarioglu

ayca.sarioglu@img.com.tr

Editor

Yaren Kayıkçı

yaren.kayikci@img.com.tr

Yusuf Okçu

yusuf.okcu@img.com.tr

Finance Manager

Cuma Karaman

cuma.karaman@img.com.tr

Digital Assets Manager

Emre Yener

emre.yener@img.com.tr

Technical Manager

Tayfun Aydın

tayfun.aydin@img.com.tr

Design & Graphics

Sami aktaş

sami.aktas@img.com.tr

Accountant

Yusuf Demirkazık

yusuf.demirkazik@img.com.tr

Subsciption

İsmail Özçelik

ismail.ozcelik@img.com.tr

HEAD OFFICE:

İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Ihlas Media Center

Merkez Mah. 29 Ekim Caddesi No: 11B / 21

Yenibosna Bahcelievler, Istanbul / TURKEY

Tel: +90 212 454 22 22

www.img.com.tr sales@img.com.tr

KONYA:

Metin Demir

Hazım Uluşahin İş Merkezi C Blok

Kat: 6 No: 603-604-605 KONYA

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

Automechanika drives in

Actually, the brand name Automechanika signifys successful fairs for the automotive

original equipment manufacturing and aftermarket industries around the world. Whether

in Europe, Asia or the Americas, Automechanika aims at providing the ideal trading and

information platform for automotive professionals.

Messe Frankfurt’s international expertise in the field of trade fair organization and in-depth

knowledge of the most dynamic markets provides the base for each Automechanika Fair.

The major product groups to be displayed at Automechanica Frankfurt include:

Parts & Components, EV charging systems, Electronics & Systems,Accessories

& Tuning, Repair & Maintenance, IT & Management, Service Station & Car

Wash.

The automotive industry is one of the remarkable “locomotives” of the Turkish economy.

It assembles some of the country’s largest exporters and represents one of the leading

investor industries. A multitude of enterprises engage themselves in both production and

trading, adding enormous value to the already dynamism of the automotive industry.

Türkiye's autoparts industry exports are increasing steadily year by year.

It is the only country within the surrounding geographical area to have established a

well-advanced automotive industry. Therefore, the automotive industry is strategically

important both for Türkiye and for the firms that invest in Türkiye.

The Turkish automotive supplier industry produces almost all types of parts, components

and spare parts such as engines and engine parts, power train parts and components,

brake and clutch parts and components, hydraulic and pneumatic systems, suspension

systems, security systems, rubber and plastic parts, chassis, frames and parts, casting and

forging, electrical equipment and parts, lighting systems, accumulator batteries, seats etc.

The structure of the automotive industry is changing dynamically, making Türkiye an

alternative suppliers center for global manufacturers.

This month, we are at Automechanika Frankfurt, 2022 to convey the messages of Turkish

auto parts industrialists and exporters.

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

share in the increasingly competitive automotive markets.

We wish Turkish automotive exporters and their trading business people lucrative

business.

PRINTED BY:

İHLAS GAZETECİLİK A.Ş.

Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza

No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL

Tel: 0212 454 30 00

www.ihlasmatbaacilik.com

automotiveexport

automotiveexports


NORMA Group

expands production

capacities in China

NORMA Group has put a fifth plant into

operation in China. The site is located in

Guangzhou in the Guangdong province in

southern China, strategically positioned

near Guangzhou Automobile Group

(GAC) and other Original Equipment

Manufacturers (OEMs) of electric

vehicles. At the new plant, NORMA Group

manufactures and assembles thermal

management systems for battery-electric

vehicles (BEV) and plug-in hybrid cars

(PHEV).

“China is the largest manufacturer of newenergy

vehicles in the world. More than

one third all battery-electric and hybrid

vehicles come from production sites in

China, either by national OEMs or by joint

ventures,” says NORMA Group’s CEO Dr.

Michael Schneider. “With the new plant

in Guangzhou, we are further expanding

our market position through a targeted

investment according to our localization

strategy. By offering our products and

services where the demand is, we can

provide efficient logistics, improved

shipment costs and engineering services

close to the customer.”

Currently, the plant is serving customer

orders for fluid transport systems that have

already been booked. Series production

for other regional customers are being

prepared.

On the occasion of the opening of the new

site, China Country Leader Michael Eisner,

who is responsible for NORMA Group’s

business activities in China, said: “We

already see and expect further increase in

demand for advanced joining technology

for electric vehicles. With our significantly

expanded production capacities in China,

we are well-positioned to serve the

Chinese customers as they continue to

drive the technological transformation of

the transport sector.”

The new facilities on the premises of the

Datang Auto Technology Park have a total

space of 2,500 square meters and an initial

annual production volume of around

two million parts. In further expansion

states, NORMA Group plans to increase

the capacity to five million parts. Around

65 employees currently work at the

Guangzhou plant; the number is expected

to rise to over 100 by the end of the year.

The site is a branch of NORMA Group’s

plant in Qingdao in eastern China

(Shandong province) which is in operation

since 2008 and currently running at full

capacity. NORMA Group operates five

plants in China, two for metal joining

solutions such as clamps and clips, and

three plants for plastic solutions such as

quick connectors, tubes and complete fluid

systems.

In 2021, NORMA Group generated EUR 173

million in sales in the Asia-Pacific region,

which amounts to 16 percent of Group

turnover. The Chinese automotive market

is a strategic market for NORMA Group

on the region, together with the market

for water managements products in India,

Malaysia and Australia, the automotive

market in India as well as the market for

industry applications in various countries.

September 2022 20


ARMA FIXING SYSTEMS continues to invest in

digitalization and green energy

Industry 4.0 appears in every phase of our

lives. There are many examples from

the vacuum cleaners we use in

our homes to the autonomous

vehicles that are gradually

becoming

widespread.

The rapid

development

of technology

has made competition

indispensable

among

companies

and it

contributes to the

development of

the sector by providing an advantage

in the manufacturing sector. As ARMA

FIXING SYSTEMS, we plan and implement

digitalization steps to keep up changing

trends. Parallel to this, we have successfully

completed the CANIAS ERP version

transition used in our company and have

laid the foundations for compliance with

INDUSTRY 4.0.

By investing in technological

infrastructure in every department

of our company, studies are planned

to set our company as an example to

other companies in the sector in this

transition. Contributing to the ISO

9001:14001 Environmental Policy,

which is not limited to the production

area, will contribute to the carbon

emission and zero waste project by using

technologies that allow documents to

be stored in the digital environment. The

cockpit screens and user-friendly screens

will be used in the related departments as

we frequently see in the business world

and it will provide ease of use for the

staff. Creating added value by adapting

to competitive conditions with INDUSTRY

4.0, which will ensure the production of

the company with the least loss and have

a share in the change trend of our world,

is among our targets in the near term.

Besides ERP development studies in the

production area, infrastructure hardware

investments were made in every point of

each production department. In 2023, our

main goal will be to establish and operate

a facility infrastructure where instant

data is received and processed

in all areas of instant

production, interpreted

by artificial

intelligence and

losses and errors

are minimized.

Automation

studies are also

carried out in

our equipment

and machines in our

company. It is used in

tapping, vibratory feeding

systems, pressing machines, assembly

machines, mold manufacturing, storage

operations, packaging machines, etc. in

our production area. Automation and

improvement studies in all areas of the

company are successfully implemented

with the contributions of our engineering

department. In our project of adapting a

100% camera control system to automatic

forming machines used in the production

of fixing clips for the automotive and

white goods sectors, the system was

successfully operated on a machine

selected as a pilot. A new automatic

bolt assembly line design has been

completed in the production of hose

clamps and no problems have been

detected in the trial productions. The

automation line we developed for

the production of DIN 3016 retaining

clamps has taken its place in mass

production as of April. The design of the

servo-driven forming machine, which

will be used in the production of the

locking type pre-positioned fixing clamp,

which is preferred especially by the fluid

management system manufacturers in

the automotive sector, continues and the

project is planned to be transferred to the

series in June.

ARMA closely follows the issues related

to environment, carbon footprint and

sustainability both in the global and in

Turkey. Based on the idea of what ARMA

can do for our future, it separates the

non-hazardous and hazardous wastes,

and carries out recycling and disposal

activities. Various studies have been put

into practice to reduce the consumption

of natural resources. In addition, trainings

are provided and exchanges are made

to raise awareness of the employees.

ARMA has aimed to spread environmental

awareness among the grassroots and to

provide it with the support it receives

from its employees. Social responsibility

projects are planned so that the children

of the employees are also included in this

awareness-raising process.

ARMA also conducts green energy research

studies in order to ensure sustainability

in terms of the environment. Recognizing

that Solar Energy is the most suitable

green energy source originating from the

facility structure, a Roof SPP project was

initiated. This project, which aims to meet

60% of the company’s total energy needs,

is expected to be completed by December

2022.

ARMA has formalized these works and

crowned it with the ISO

14001 Environmental

Certificate. By

including itself in

the Zero Waste

project of the

Ministry of

Environment,

studies have

also started

for the

Zero Waste

Certificate.

September 2022 22


Automechanika

fairs gear up!

Automechanika Frankfurt

is just around the corner.

Automechanika Dubai is

counting down. Messe Frankfurt

organized a press conference

and furnished press members

and sector professionals with

important details about the fairs.

The Automechanika Frankfurt Fair,

which has brought together the leading

companies of the automotive industry

since 1971, drives in on 13th September

to bring supply and demand, trends and

innovations together for 5 days.

Before the fair, important names of the

automotive industry, members of the

press and fair directors came together

with the organization of the Istanbul

Chamber of Commerce. The future of

the automotive industry was discussed at

the press conference held in cooperation

with Automechanika Istanbul Fair Director

Can Berki, Dubai Director Mahmut Gazi

Bilikozen and the Istanbul Chamber of

Commerce (ICOC).

Pointing out that they would organized the

Turkish participation to the Automechanika

fair, which will be held between 13-17

September, Israfil Kuralay, Vice Chairman

of the Board of ICOC, underlined that

with their 140 years of history, they take

position with the buyers.

Continuing his evaluations, Kuralay

stated that they have achieved national

participation in Buenos Aires, and

especially in the UAE, since 2016.

Kuralay said, “We will take place in

the Automechanika Dubai fair with 69

companies on an area of 1639 square

meters. I think the biggest space after

the Paris Chamber of Commerce belongs

to ICOC. Since America has a different

structure from ours, I can say that the

closest building to us is in Paris. We support

the manufacturers of our country in more

than 40 fairs. Today, as a result of our work

with the Automechanika team since 2016,

we are taking part in the fairs with more and

more exhibitors every year.”

Speaking on his part, Automechanika

Istanbul Fair Director Can Berki stated that

the fair organization system in Germany

dates back to the 1240s and said that the

Automechanika Fair, which has been going

on since 1971, continues its activities

dynamically at 13 different countries. Berki

said, “It was said that the pandemic would

end the fairs, even many fairs had turned

to digital, but the world is not ready for the

digital fair system in this process. There is

a high participation in our fairs these days

when pandemic restrictions are reduced. In

this sense, we have been collaborating with

the Istanbul Chamber of Commerce in 15

events in 5 different countries since 2016.

Our activities continue in different channels

with the ICOC,” he said. Automechanika

Dubai Director Mahmut Gazi Bilikozen, who

stated that there was a serious movement

in the sector after the production of electric

cars and the legalization of women’s driving

in Saudi Arabia, said, “The costs have

increased in this process, but the increase

in e-commerce makes our work easier.

In the automotive sector, Japan, China,

Saudi Arabia, America and Germany are in

serious competition. China has managed

to rise from fourth place to second place

with the work it has done in recent years.

We are getting serious feedback from

these countries in terms of participation in

the fair. This year, we see that around 800

participants from more than 50 countries

applied to us. In recent years, Turks have

passed Germany and took the first place in

participation in the fair. We are very pleased

to see such a participation from our country

with the contributions of the Istanbul

Chamber of Commerce.”

September 2022 24


Europe’s banks

brace for bumpy

ride after cheap

money decade

Europe’s banks, facing a potential economic

storm and a rise in borrowing costs for the

first time in more than a decade, are set to

show their weak spots when they update

investors on how their business has fared

this year.

They have already had to cope with soaring

inflation and rising interest rates, a pincer

movement that squeezes borrowers, and

the Ukraine conflict, which has rattled

Europe’s economy by constraining its

energy supplies.

UBS, Deutsche Bank, Credit Suisse, BNP

Paribas and UniCredit could set the tone

for investors when they report secondquarter

results.

On the one hand, higher interest rates are

good for banks as they can charge more

for loans. But they suffer if customers,

struggling with rising prices and borrowing

costs, cannot repay.

The difficult economic conditions have put

investors in a cautious mood, which means

European banks, like their U.S. rivals, will

earn less money on deal-making and selling

investment products.

Within Europe, Germany’s banks are at the

center of the storm because the country is

particularly dependent on Russian energy

and its economy will be hit hard by any

supply shortages.

Giles Edwards, an analyst with the ratings

agency S&P, said any fears about European

banks this year would hinge on how

borrowers keep up loan repayments.

Although he did not expect a big

immediate rise in bad loans, he said he

was watching for “early warning indicators,

signs that there’s pressure, a sort of slow

squeeze essentially starting to sort of pop a

few buttons here and there.”

Analysts are also waiting to see what

happens to Uniper, the German power

company that is in talks with the

government on a bailout.

German banks may still have to set aside

more for resulting loan losses, said Michael

Rohr, an analyst with credit rating agency

Moody’s.

Over the past two months, analysts

have cut profit forecasts for Germany’s

biggest bank Deutsche Bank, which has

emerged from a series of crises and raised

predictions for the amount of bad loan

provisions it needs.

For Deutsche, the biggest risk is “a severe

recession,” Rohr said.

Other warning signs are flashing.

A survey by the European Central Bank

showed that Eurozone banks tightened

access to credit in the second quarter

and will continue to be cautious. And

Germany’s cooperative banks said they

expect a “considerable decline” in profit

this year as they brace for credit losses.

Highlighting these worries, euro zone bank

stocks have fallen more than 22% year-todate,

underperforming the wider pan-

European STOXX 600 index of shares which

is down roughly 13%.

The ECB, which raised interest rates by

a surprise 50 basis points on Thursday

to tame runaway prices, has earlier also

warned of potential perils, such as an

overheated property market. During the

pandemic, governments spent billions to

prop up much of the economy, but the ECB

has said that they may not be able to this

time.

In Spain, one senior Spanish economic

official, who asked not to be named, said

banks are generally vulnerable, pointing

to a large number of loans under special

surveillance for default and the potential

lifting of payment moratoriums.

“I don’t know what the real impact ... is

going to be and ... that worries me,” said

the official. Santander and BBVA report

second-quarter results at the end of the

month.

In Italy, gripped by a political crisis,

pressure is mounting on the country’s

government bonds, eroding the banks’

capital cushions as the Italian government

bonds they hold lose value.

Italy’s reliance on Russian gas and the

importance of its manufacturing sector

made up mostly of small businesses,

increase the chances of a recession.

Almost 300 billion euros (or more than

40%) of Italian corporate loans are

guaranteed by the state after banks used

emergency measures during the pandemic

to refinance existing debts.

While Britain’s banks are expected to

chalk up solid results, Tom Merry, a

banking strategy consultant at Accenture,

said he expected an increase in bad loan

provisions.

NatWest is expected to swing from

releasing 38 million pounds ($45.43

million) worth of cash put aside against

potential defaults in its first quarter results,

to new impairment charges of 136 million

pounds, based on a poll of analysts.

In higher-margin investment banking,

Europe’s banks are likely to see a slump in

year-on-year banking fees similar to that

reported by U.S. rivals earlier this month,

analysts said.

JPMorgan and Morgan Stanley reported

that investment banking fees fell by more

than half a year ago. U.S. merger volumes

fell by 29% in the first half of this year,

based on Refinitiv data, while they rose 1%

in Europe.

With its significant U.S. business, Barclays

may see a performance similar to Wall

Street rivals, while banks like HSBC and

Standard Chartered, with their Asia focus,

could fare better.

September 2022 26


Buga Technic is working to become a world brand with

uncoditioned customer satisfaction perceptive

Buga Technic is manufacturer and dealing

company for trucks, trailers and buses

spare parts with more than 30.000 kinds

of high quality aftermarket parts in range.

Buga Technic offers its partners to minimize

their operational, freight costs and quality

risks as supply all of their needs from one

place instead of lots of suppliers for each

requirement.

Buga Technic as one of the rapidly

developing company of Automotive sector,

established in 2016. It is first investment

of ASN Group outside of printing sector.

ASN Group was established in 1975 by

Ali Küçüksarıkulak and his 5 co-partners

as Akın Printing House in Konya, Turkey.

It became one of the leader of printing

sector in Konya region during long years.

After 3rd Generation attended company,

investment attack started and Buga Technic

is estabished in 2016, Tona Machine

established in 2019 and Sectec Security

Technologies established in 2021.

In order to increase efficiency and create

synergy, it was decided to gather under

one roof as ASN Group of Companies and

the headquarters of all companies were

gathered in our campus in Konya Organized

Industrial Zone.

What do you offer to your customers?

Buga Technic offers a great variety of

products in spare parts of all European

trucks, trailers and buses. Main philosophy

of Buga Technic is unconditioned customer

satisfaction. We always offer high quality

and warranted products as quickly and

delivery on time thanks to high stock levels

and stong logistic infrastructure.

September 2022 28


Buga Technic is working with many suppliers

with goods agreements and follows

the market prices and sectoral changes

continuously and offers its customers cost

minimization opportunities and provide

stock cost advantage thanks to don’t have

minimum order quantity. Product range

of Buga Technic is Engine Parts, Clutch

Parts, Brake Parts, Compressor and Repair

Kits Caliper Repair Kits, Suspension Parts,

Steering Parts, Gear Box Parts,Electrical

Parts, Fuel Exhaust System, Fifth Wheel and

Repair Kits,Trailer Parts, Landing Gears, Front

& Rear Axle Parts, Fittings, Cabin and Body

Parts, Propeller Shaft Parts for all Europeant

Trucks and Trailers.

Where is your export markets?

We reached 63 countries in export. Our

main market is Europe. If we give details

of counties, We export to 23 Countries in

EUROPE, 12 Countries in ASIA, 19 Countries

in AFRICA, 8 Countries in AMERICA and 1

Country in AUSTRALIA continent.

What is activities of your other

companies?

Akın Printing Center is our first company

and it countinue to manufacture

thousands of paper materials as combine

our experience, knowledge and last

technological machines. We are working to

add value to our customers from graphic

design to catalogs, promotional products

and packaging items.

Tona Machine was established to

produce Packaging Machines in 2019.

As Tona Machine, we produce machines

with following packaging and export

processes got inspired from the

experience in spare part sector. Also we

keep on working for producing complete

packaging lines with improving ourselves

day by day. Existingly we manufacture

Pochette cutting machine, Pochette

bonding machine and manual and pallet

shrinking machines.

Sectec Security Technology is an

investment of one of Turkey’s leading

steel service companies Küçükbakırcı

Group of Companies. Sectec Security

Technologies is manufacturing turnstiles

and other Access control systems.

Sectec International Trading as our joint

venture with Küçükbakırcı Group for the

distributorship of products produced by

Sectec Security Technologies in 2021.

We are the main distributor of Sectec

Security Technology in Turkish domestic

Market and export markets.

We continue to grow and continue our

investments with our understanding that

never compromises on our quality and

customer satisfaction, from the day we

were established to the days when we

are getting closer the celebration of our

50th Anniversary.

September

2022

30


Electric car sales

may reach 4,500

units this year

In the first six months of 2022, the number

of registered electric vehicles increased

by 170 percent from a year ago to 2,413,

according to a recent report by the Electric

and Hybrid Vehicles Association (TEHAD).

In the whole of 2021, 2,846 electric

vehicles were sold in Turkey.

Due to supply and chip problems, overall

vehicle sales in the country fell more than

10 percent year-on-year in January-June

to 272,000 units, with hybrid vehicle sales

contracting by 17.8 percent.

In the first six months of this year,

consumers bought 9,731 hybrid vehicles.

Fewer hybrid vehicles were available in the

market which led to the decline in sales in

this segment.

“The upward trend in electric car sales may

continue in the remainder of the year,”

TEHAD said in the report.

Depending on the supply situation, the

number of electric vehicles sold in Turkey

may reach 4,500 units at the end of this

year, according to Berkan Bayram from

TEHAD.

Top-selling brands

Renault, BMW and Mercedes-Benz

dominated the electric car sales in the first

half of this year. BMW topped the list with

a market share of 21 percent. The carmaker

sold 504 electric vehicles in Turkey in the

first half.

Renault’s Zoe was the top-selling model

(492 units in the market, while Mercedes-

Benz’s market share was 18 percent. In

the first half, the sales of Porsche’s Taycan

model declined from 294 units a year ago

to 104 units as the Russia-Ukraine war

impacted the production of this model.

In the hybrid vehicles segment, Toyota

remained the market leader, but its share

shrank as Fiat and Honda model vehicles

were introduced to consumers. The market

share of Fiat and Honda was 12 percent

each in the first half of 2022.

September 2022 32


Mobile refrigerators have become very popular

Suphi Command, General Manager of DEKO brand, which increases its export targets, spoke to

Automotive Exports magazine.

Can you tell us about the

establishment story of the

DEKO brand?

Our company’s aim is to manufacture new

value-added products that have never

been produced yet by developing new

production techniques and technologies.

We set out for this purpose. At first, we

started with consultancy and then we

progressed on mobile vehicle refrigerators.

Which products do you have in

your product range? What are your

activities in general?

In the mobile vehicle refrigerator segment;

we have products for Truck and Heavy

Vehicle, Minibus and VIP sector, Offroad

and Military vehicles, Vaccine and Medicine

Transport, Boat, Yacht, Caravan industries.

In addition, customer-specific OEM product

design and production are also carried out.

These products are exported to 22 different

countries in 4 different continents abroad.

Can you evaluate the demand for

vehicle refrigerators? What types of

vehicle owners make demands on

you?

With the pandemic process, there has

been an increase in the sales of individual

products. The fact that people move

away from cities and turn to nature has

led to serious increases in the camping

and caravan sector. The sector continues

to grow rapidly. Both new companies

producing existing products and new

products that have never been produced

until now have been introduced to the

market.

Usually, we have two different sales, areas

for individual own personal use and areas

as part of his professional life. A significant

increase is observed in both groups.

Do you have activities abroad? Are

you considering investing in different

areas within your sector? Will you

increase your investments on behalf

of the automotive sector in the

future?

We do not have any production-related

activities abroad. However, our customer

network covers the whole of Europe.

We are continuing our new product

development and patent studies on new

type refrigerators to be used for electric

vehicles without using any energy from

the vehicle (i.e. without shortening the

vehicle range).

In the automotive sector, we plan to

reach more widespread customers by

developing new technologies that will

produce more value-added products.

Flexible Molding Technique and Fast Ice

Making Technology are only available in

the products produced by our company in

the world. Likewise, we continue to work

on new technologies that we plan to do in

the future.

What are the policies you have

determined to increase customer

satisfaction?

In order to increase our customers’

satisfaction, we have successful business

results in developing products that

can perform above their expectations.

For example, our Rapid Ice Making

Technology can make ice 3-4 times faster

than a home refrigerator.

September 2022 36


Automechanika

Frankfurt heralds new horizons

Experience innovations from international

key players and learn more about

new technologies and trends at the

international meeting place for the

manufacturing industry, repair shops and

automotive trade. Like no other trade fair,

it represents the entire value chain of the

automotive aftermarket.

Automechanika Frankfurt 2022 marks

the restart of the automotive aftermarket

industry annual exhibition from 13th to

17th September 2022 presenting the

audience with its familiar biennial format

and location.

Automechanika 2022 will offer the

complete trade fair experience, filling

the five show days with key international

players, advanced tech display, lectures,

live demonstrations, and networking

events drawing the manufacturing sector,

repair shops and automotive trade closer

together.

The entire value chain of the automotive

market will cover the show floor at

Frankfurt Messe in front of numerous

professional visitors comprising highquality

industry-leading experts, C-level

representatives and influential buyers.

With a highly international visitor profile,

Automechanika Frankfurt 2022 is the ideal

place for staging product solutions, hottest

trends and innovations in the categories

of Electronics & Connectivity, Parts &

Components, Diagnostics & Repair to Body

& Paint, Alternative Drive Systems and

more.

Each Automechanika expo spotlights

the most pressing themes and events

concerning the automotive aftermarket

through the targeted interactive

programme and expert-led workshops.

The trade fair reflects the recent surge in

sustainable, climate-neutral solutions by

devoting one trade show day to the topic

of Remanufacturing part of Automechanica

Academy, where experts will present the

most recent developments in the field.

New Mobility and digitalisation will

permanently change the automotive

aftermarket. Learn about new products

and solutions for the mobility of the future

at Automechanika Frankfurt. Alternative

September 2022 38


drive technologies (electric mobility,

hydrogen, fuel cells, re-fuels and e-fuels,

gas), connectivity and digitalisation

(autonomous driving, connected cars,

traffic control and smart mobility)

will be at the centre of attention. The

special show with pioneering lectures,

the Automechanika Innovation Awards,

product presentations, start-up pitches

and research projects from universities

and colleges, and a networking lounge will

bring together industry players and ensure

the necessary transfer of knowledge. The

range of products and services is aimed

at industry, trade, science and politics and

also builds a bridge to the OEs. Innovations

from the fields of intermodal mobility and

micromobility can be found at the Future

Mobility Park on the open-air site.

Digitalisation, electrification, cost pressure

and the need for investment (in equipment

or know-how) are strongly driving the

change process in the workshop business.

Service concepts, safety measures and

workshop equipment for the repair of

electric or hybrid vehicles, access to

data, diagnostics, apps, e-mobility, online

portals, sustainability, recruiting and

changing user behaviour are among the

megatrends and challenges currently

moving the automotive aftermarket. In

addition to the classic range of products

in the field of combustion engines, such

as oil and lubricants, the exhibitors at

Automechanika Frankfurt will be showing

above all innovative solutions and new

business models for the future.

September

2022

40


TAYSAD- Excels in innovation

and technology

• Established in 1978, TAYSAD is the sole

and most competent representative of the

Turkish automotive supplier industry

• With 460+ members, TAYSAD represents

65% of the output of the automotive

supplier industry and 70% of the industry’s

exports

• 81% of TAYSAD’s members operate in the

Marmara region;10% in the Aegean region

and 9% in other regions of Türkiye

• 460+ TAYSAD members employ more than

200,000 people.

• 24% of TAYSAD members have foreign

partners who hold varying levels of shares

• AYSAD is a member of CLEPA, the

European Association of Automotive

Suppliers (www.clepa.eu)

• TAYSAD has a reference position within

Türkiye for domestic and international

OEM’s, Tier 1 Suppliers and institutions

being the representative of Turkish

Automotive Parts and Components

Suppliers

•T AYSAD holds ISO 9001:2015 Certificates.

Vision

“3T-10-2030”

To put the Turkish Automotive Supplier

Industry into the top ten in the Global

Automotive Market through its Design-

Technology-Supply capability.

Mission

As the most competent non-govemmental

organization in its own sector, TAYSAD

strives to produce strategies to meet

the expectations of its members and to

support the sustainable growth of the

Automotive Supply industry through globally

competitive businesses.

To ensure that it continues to serve as a

“Reference Institution” in its own sector,

TAYSAD keep developing itself by working

in coordination with official institutions and

stake holders through the strength derived

from its values.

The product range of TAYSAD members

covers all sorts of parts except a few items

and is sufficiently diversified to support an

85-90% local parts ratio in domesticallyproduced

motor vehicles. The main

product groups manufactured by TAYSAD

members operating in the motor vehicle

manufacturing industry can be classified as

follows:

• Complete engines and engine parts,

• Chassis parts and spare parts,

• Radiators Forged and cast parts,

• Heating, ventilating & air conditioning

systems (HVAC systems)

• Electrical equipment and illumination

systems,

• Power trains, Batteries,

• Brake systems and parts,

• Automobile glass,

• Hydraulic and pneumatic spare parts,

• Seats

• Suspension parts,

• Design & Engineering services

• Safety spare parts,

• Simulation services

• Foam and rubber parts,

• Special vehicle production

In order to adapt to the changing

competitive environment, TAYSAD members

closely follow technological developments

and continue to invest in innovation and

expansion. With the help of their advanced

manufacturing capabilities, they produce

prototypes, use testing facilities, perform

CNC-based and conventional machining,

engage in product development, pursue

collective R&D activities with foreign and

domestic companies and use CAD-CAM

applications during the design process.

Main Activities

Co-operation with Universities:

TAYSAD works with the universities, in order

to increase cooperation with the industry.

TAYSAD promotes the career days and

support the internship programmes for the

automotive engineering students.

Co-operation with Government:

TAYSAD co-operates with government

authorities to improve the competitive

manufacturing structure of the sector

in order to establish automotive supply

strategies by considering the global

competition.

Training & Seminars:

TAYSAD organizes trainings for its members

in order to ensure that they will adapt to

the changing conditions. Top themes are

Quality, R&D, HR, Finance, Management,

Sales & Marketing, Lean Production.

Co-operation with OEM Companies:

TAYSAD organizes visits to local and global

OEM companies to improve relationship

with sub-supplier and also organizes

Supplier Days & B2B meetings.

Member Relations:

TAYSAD organizes regional member

meetings every year in order to maintain

closer relations and producing new projects.

International Competitiveness Development

Projects:

TAYSAD provides educational and

consultancy services that help its member

companies expand lean production

techniques and make the structural

transformation necessary to meet customer

expectations. Those projects are being

carried out with the support of Turkish

Ministry of Economy. In this way, TAYSAD

improves the international competitiveness

of its member companies.

Global Markets:

TAYSAD concludes collaboration agreements

with the relevant sectoral organizations

of the potential foreign markets. TAYSAD

organizes foreign delegation visits, especialy

to the new developings areas and markets.

Corporate Social Responsibility Projects:

TAYSAD leads CSR Projects, ADMOG and

20.000 Careers, to support Vocational High

School’s applied education courses and

inform university students regarding the

career opportunities in automotive ındustry.

Fairs:

TAYSAD signs agreements with trade fair

organizations in order to provide more

appropriate conditions for its members to

participate in the domestic and international

exhibitons, and also participates in the

adequate trade fairs by establishing an

info stand to promote and publicize the

manufacturing technical capacities of its

members.

Public Relations:

TAYSAD publicises Supplier Industry’s needs

and solution methods through out media.

Meetings & Conferences:

TAYSAD participates in the domestic and

international conferences and meetings

concerning automotive industry. TAYSAD

organizes also events for its members in

order to ensure that they adapt to the

changing conditions. TAYSAD shares the

latest global informations through those

organizations.

Benchmarking Study:

TAYSAD provides substantial benefits to

the organizations by means of annual

“Benchmarking Study” that makes the

comparison of its members with respect to

other plants in the industry in general and

manufacturing processes.

September 2022 42


Used-car startup

Kavak expands

to Turkey, 1st

outside Latin

America

Turkey is set to become Mexican used-car

platform Kavak’s first location outside Latin

America, the company said.

Kavak, which calls itself the largest preowned

car operation in the world, is

investing $180 million to open offices and

make its platform available in four new

countries, including Turkey.

It will enter Colombia, Chile and Peru with

a planned investment of $120 million. The

company has earmarked $60 million (TL 1

billion) for its expansion to Istanbul, Turkey,

Chief Executive Officer Carlos Garcia said.

“Turkey is a $120 billion market, so it’s

a huge opportunity,” Garcia said in an

interview with Reuters.

“They face similar problems that we face in

Mexico and Brazil,” he added, referring to

fraud in used-car sales and difficult access

to financing.

The SoftBank-backed startup is valued

at $8.7 billion, according to Garcia, and

has experienced rapid growth in its

native Mexico, which accounts for 60%

of its operations. Kavak also operates

in Argentina and Brazil. That scale-up,

however, hasn’t come without speed

bumps. Kavak cut an estimated 150 jobs

from its Sao Paulo and Rio de Janeiro

operations last month, less than a year

after expanding to Brazil, a result of

investing ahead of growth and needing

to adjust to changing market conditions,

Garcia said. Garcia added that Kavak is not

currently expecting “massive layoffs.”

The company has also faced highlypublicized

social media complaints about

its customer service in Mexico.

Garcia attributed some of that to backlogs

produced by pandemic shutdowns of

government offices, delaying the necessary

paperwork around used-car sales.

“We have a group of users that we

definitely could serve better,” Garcia said.

“What I like to ask my users is what

happens if Kavak doesn’t exist?” he added,

citing the informality of the used-car

market.

September 2022 46


Volvo sees

higher sales

despite supply

disruptions

Truck maker Volvo reported higher sales

and profits in the second quarter despite

the company still feeling the effects of

global supply chain disruptions.

The world’s number two truck maker

reported a better than expected revenue of

118.9 billion Swedish kronor ($11.4 billion)

and a net profit of 10.5 billion.

Analysts had predicted an average of 107

billion in revenue and 8.9 billion in net

profit, according to a survey by Factset.

“In this quarter, we have had extra costs

related to supply chain disruptions as

well as higher costs for material and

have continued to work proactively and

successfully with price management to

mitigate these effects,” Martin Lundstedt,

CEO of Volvo, said.

“The situation in the global supply chain

for semiconductors and other components

continues to be unstable, characterized by

disruptions, unpredictability and lack of

freight capacity,” he noted.

“We will therefore continue to have

disruptions and stoppages both in the

production of trucks and in other parts of

the group.”

Like many other companies, Volvo has

also been impacted by Russia’s invasion of

Ukraine. In February, it said it had stopped

sales and halted production at its Kaluga

plant.

In April, Volvo announced it had nine billion

kronor in assets related to Russia and that

in the first quarter assets amounting to

four billion would negatively impact its

results.

In 2021, approximately three percent

of Volvo’s net sales were attributable to

Russia, according to the company.

September 2022 48


6 months, 6K

kilometers:

Türkiye caps car

sales to curb

prices

Türkiye is preparing to unveil a new

regulation that will be aimed at reining

in the surge in prices of new cars, the

country’s trade minister announced.

Prices of vehicles in Türkiye have been

soaring due to persistent supply shortages

of components, supply shortfall coupled

with strong demand, and the depreciation

in the Turkish lira, which makes imports

more expensive.

Companies, car showrooms and car

rental companies will now have to keep

the cars they acquire for six months and

cover at least 6,000 kilometers before

being allowed to sell them, Trade Minister

Mehmet Muş told the third Türkiye Export

Mobilization summit.

Inflation, high loan rates, supply chain

bottlenecks and an ongoing chip shortage

are just a few of the problems that have

been plaguing the auto industry.

Both consumers and the government have

blamed car sellers for price gouging. The

government ramped its audits to curb the

prices and make vehicles more reachable.

“After the first registration, companies,

dealerships, car rental companies will

not be able to sell the new vehicles

they bought for six months and 6,000

kilometers (3728 miles),” Muş said.

The minister said the country’s

competition watchdog was engaged

in more detailed inspections, looking

at whether there has been market

manipulation or common price setting

among companies.

Sales of passenger cars and light

commercial vehicles in Türkiye jumped

9.1% year-over-year in July to 52,206

units, according to the data from the

Automotive Distributors Association

(ODD). The January-July sales were down

by 7.3% to 410,110 vehicles, the data

showed.

Sales fell 4.6% year-on-year in 2021 to

737,359 vehicles, according to the ODD. It

followed a 61.3% year-over-year increase

in 2020 to 772,788 units, despite the

fallout of the coronavirus pandemic.

September 2022 50


Automotive sector’s exports hit $2 billion

The automotive exports increased by 3.5

percent in July from a year ago to stand at

$2 billion, the Uludağ Automotive Industry

Exporters’ Association (OİB) has said.

The industry’s share in Türkiye’s total export

revenues was 11 percent, ranking second

among the exporting sectors.

Passenger car exports declined by 8 percent

to $534 million, while bus and minibus

exports fell 7 percent on an annual basis

to $102 million. Sales of passenger cars to

major export markets the U.K and Germany

increased by 77 percent and 15 percent,

respectively, the OİB said. Passenger car

exports to France and Italy also exhibited

increases of 29 percent and 30 percent,

respectively. The industry’s total exports to

the U.K amounted to $321 million, marking

a 38 percent rise from July 2021. Germany

increased its imports from the Turkish

automotive sector by 8 percent to $294

million. Exports to Italy grew by 16 percent

year-on-year to $152 million.

Exports to the European Union remained

unchanged from a year ago to stand at $1.2

billion.In the first seven months of the year,

the automotive industry’s export revenues

rose by 5.8 percent to $17.3 million. The

monthly exports averaged $2.5 billion

between January and July.

“Despite the contraction in the main

markets, such as Europe and the U.S., the

industry’s export performance remained

strong,” said Baran Çelik, the head of the

OİB.

September 2022 52


Toyota profit down in Q2 as chips

shortage keeps customers waiting

Toyota’s profit fell nearly 18% in the

April-June quarter from the year before,

as the semiconductor chip shortage that

has slammed the auto industry dented

production at Japan’s top automaker.

Toyota Motor Corp. reported a quarterly

profit of 736.8 billion yen ($5.5 billion),

down from 897.8 billion yen the previous

year.

Quarterly sales rose 7% to 8.49 trillion yen

($63 billion).

Toyota officials apologized to customers

who have been waiting for their cars after

putting in orders. Some have waited so

long that the vehicle went through a model

change in the meantime.

Various problems apart from the chips

shortage have hurt production, such as

flooding in South Africa and pandemic

lockdowns in Shanghai, according to the

manufacturer based in Toyota City, central

Japan.

Electric vehicles, which need many chips,

have been the worst hit by the global chips

crunch. Rising material costs also hurt

Toyota’s bottom line.

The negatives offset the perks of a weaker

Japanese yen. A cheap yen benefits

Japanese exporters like Toyota by boosting

the value of their overseas earnings when

they are converted into yen.

The favorable foreign exchange rate

increased Toyota’s operating income for the

quarter by 195 billion yen ($1.5 billion), the

company said.

Toyota sold about 2 million vehicles during

the quarter, down from 2.1 million vehicles

in the same period last year.

But it kept unchanged its full fiscal year

forecast to produce 9.7 million vehicles,

saying output will pick up in the months

ahead.

Toyota posted record earnings in the last

fiscal year through March, racking up a 2.85

trillion yen ($21 billion) profit, up nearly

27% on year.

For the fiscal year through March 2023,

it’s forecasting a profit of 2.36 trillion yen

($17.6 billion). The projection was revised

upward from an earlier estimate of 2.26

trillion yen ($16.9 billion).

Toyota said it did not include numbers

from its group truck maker Hino Motors

because Hino hadn’t released a forecast.

Hino acknowledged it had been falsifying

emission and mileage data for 20 years

and apologized for betraying its customers’

trust. It has promised to prevent a

recurrence.

Toyota, which makes the Prius hybrid,

Lexus luxury models and Camry sedan, has

been boosting electric vehicle sales as the

world’s interest in sustainability grows.

At times it has been accused of lagging in

electric vehicles, partly because it’s done

well with hybrid vehicles, like the Prius,

which includes a gasoline engine and an

electric motor.

The company expects to sell 10.7 million

vehicles worldwide in the fiscal year

through March 2023, up from nearly 10.4

million vehicles in the previous fiscal year.

September 2022 54


Germany’s economic model

wobbles amid energy crisis

The outlook for Germany, Europe’s largest

economy, is clouded by the fallout from

Russia’s war in Ukraine.

A recession in the months to come has

a growing sense of inevitability about it,

observers say. And it is not just growth that

is sputtering - Germany’s entire economic

model is being called into question by

experts.

“The war in Ukraine puts an end to the

German economic business model as we

knew it -- a model which was mainly based

on cheap energy imports and industrial

exports into an increasingly globalized

world,” say analysts from ING bank.

Less expensive to produce and transport,

with prices pinned down in long-term

contracts, Russian gas has for decades

contributed to Germany’s economic

prosperity.

Industry consumes 30 percent of the gas

burnt in Germany. Before the war, more

than half of the total supplies came from

Russia, a figure which had fallen to 35

percent by the beginning of June.

To wean itself completely off Russian gas,

Germany is looking further afield for new

supplies including shipments of liquefied

natural gas from the United States and

Qatar, as well as moving more quickly to

renewable electricity generation.

“As an exporting nation, Germany has

benefited disproportionately from free

trade. But it is exactly that which is now

in danger,” opined the Sueddeutsche daily

earlier this month.

The coronavirus pandemic and the Ukraine

war have shown the weaknesses of open

economies as supply chains have been

upended and key components have

become scarce.

Germany’s dependence on China is also

worrying politicians in Berlin.

“It’s potentially a new risk,” economist

Claudia Kemfert told AFP. While the risk

was less acute than dependence on Russia,

more needed to be done to “focus on the

domestic economy and build resilience”,

she said. After years of anaemic growth,

inflation is back with a vengeance in the

European Union. In Germany, the memory

of 1920s-style hyperinflation weighs heavy

on the public debate.

The obsession with price stability ensures

a “competitive industry and a nation of

savers”, according to a recent report by

French think tank OFCE.

Returning to Germany’s strict budgetary

rules in 2023 after a three-year pandemicenforced

hiatus is a key aim for Finance

Minister Lindner. The goal was “as

surprising as it is unrealistic”, said analysts

at ING. Germany is preparing to spend

billions again to support households

through the coming energy crisis and

investing colossal amounts into the switch

to renewable energy.

“Germany will need time and money” to

implement “investment and structural

change as determined and committed as it

demanded from other eurozone countries

in the past”, the ING analysts said.

September 2022 56


Fiat dominates

vehicle sales in

local market

Fiat sold a total of 62,154 vehicles in the

first six months of 2022, dominating the

local market in terms of sales.

The carmaker sold more than 41,000

passenger cars and around 21,000 light

commercial vehicles in January-June,

according to data from the Automotive

Distributors’ Association (ODD).

Almost all the vehicles that Fiat sold were

produced locally as the company sold only

728 imported vehicles.

In the best-selling brands’ list, Renault

ranked second. In the first six months of

the year, Renault sold 49,330 vehicles,

including 43,800, passenger cars and

5,500 light commercial vehicles. Of those

passenger cars, nearly 34,000 were

manufactured in Turkey.

Ford sold over 33,000 vehicles on the local

market, including 5,600 passenger cars and

27,000 light commercial vehicles, claiming

the third spot on the list.

Toyota and Hyundai came fourth and

fifth with sales amounting to 17,400 and

14,600, respectively.

Data also showed that Volkswagen sold

most imported vehicles at 29,083, including

25,000 passenger cars, followed by Dacia

at 17,900 -all of them were passenger

cars- and Opel at 16,800, including 14,500

passenger cars and 2,300 light commercial

vehicles.

Peugeot’s sales of imported passenger

cars and light commercial vehicles were

11,000, and 4,140, respectively. In the

first six months of this year, Citroen sold

10,000 imported passenger cars and 2,900

imported light commercial vehicles.

From January to June, 12 Ferraris, 11 Aston

Martins, 3 Lamborghinis and nine Bentley

cars were sold.

Total vehicle sales in Turkey stood at

357,900 in the first half of this year,

including 202,000 imported cars and

156,000 locally manufactured vehicles. The

country’s automotive market shrank 9.3

percent compared with the same period of

last 2021.

September 2022 58


Ford JV starts

production of

all-electric

Transit model in

Turkey

Ford Otosan, a joint venture of the

U.S. automaker and Turkey’s largest

conglomerate Koç Holding, has begun mass

production of its all-electric Transit model

via a 2 billion euro ($2.2 billion) investment

to increase capacity.

The first E-Transit, which the carmaker

says is Europe’s strongest and Turkey’s first

all-electric commercial vehicle, rolled off

the assembly line in a ceremony at Ford

Otosan’s Gölcük plant in the northwestern

province of Kocaeli.

Ford Otosan thus became the first major

automotive company to produce an allelectric

vehicle in Turkey in large volume,

with the E-Transit model to be sold in

Europe and produced at the company’s

Gölcük plant.

Ford Otosan will raise the factory’s annual

vehicle capacity to 650,000 from 455,000

under the 2 billion euro investment

announced in 2020.

An assembly line will be established to

produce at least 130,000 batteries in the

factory.

“We are at the first stage of Ford Otosan’s

2 billion euro investment announced last

year and its 10-year vision,” said Industry

and Technology Minister Mustafa Varank.

“Today, we are talking about a rapid

transformation in the automotive industry.

In 2030, 30% of the world’s vehicles will be

electric and connected vehicles,” he said at

the ceremony.

Varank also said Turkey is among the 14

manufacturers globally with its production

power in the automotive industry.

“Our country aspires to take the lion’s

share of the electric vehicle market.”

The carmaker said it is now shipping the

first production units of the E-Transit van

to customers across Europe from the Ford

Otosan factory.

Following strong early demand for

E-Transit from European businesses, Ford

Otosan said it is now moving to full mass

production.

Ford officials said more than 5,000 orders

had been received for the fully electric

vehicle, now being sold in Europe. Sales of

the vehicle in the domestic market will also

begin this year.

“Ford Otosan’s Kocaeli plant is the heart

of Transit production in Europe, and this

celebration of E-Transit manufacturing

starts the electrified next chapter in our

already strong partnership,” said Hans

Schep, general manager of Ford Pro

Europe. Schep said this is the first step in

transforming the Kocaeli site, which he

said will see it become a major center for

electric commercial vehicle manufacturing

in Europe. Also addressing the ceremony,

Ali Koç, deputy chair of Koç Holding’s board

of directors and Ford Otosan’s chairperson,

said the production of Ford Europe’s first

electric commercial model E-Transit in

Turkey by Turkish engineers and workers “is

the result of industrialization moves that

have been growing step by step since the

first years of the Republic of Turkey.”

Koç said Ford Otosan’s recent investments

have a common purpose, which is to

further increase the competitiveness of

Turkey on a global scale today and in the

future.

“In this direction, we plan to make our

automotive industry one of the most

important and indispensable players in the

global production network together with

our ever-developing subsidiary industry

ecosystem.”

E-Transit is the all-electric version of the

world’s best-selling cargo van and the new

vehicle spearheads Ford Pro’s launch to

European customers with an integrated

offering of vehicles, software and

connected services.

For his part, Güven Özyurt, general

manager of Ford Otosan, said production of

E-Transit in their Kocaeli plant, where the

electricity is supplied with 100% renewable

energy, “is a source of pride for us and

another turning point in our increasing role

in Ford’s electrification strategy.”

“We believe that electrification of the

legendary Transit model is a major

development and an important step for

making Ford Otosan the production base of

Ford electrified commercial vehicles.”

To meet the demand for future electrified

Ford models, Ford Otosan is investing 2

billion euros and expanding employment

by around 3,000 to increase vehicle

production capacity, including the nextgeneration

Transit Custom model.

Ford’s move to an all-electric future

in Europe was also highlighted by the

recent announcement that Ford, Korean

battery maker SK On and Koç Holding have

signed a nonbinding memorandum of

understanding (MoU) for a new, industryleading

joint venture in Turkey.

Subject to a final agreement, the three

partners plan to produce one of the

largest electric vehicle battery facilities in

the wider European region. Production is

intended to start as early as mid-decade,

with an annual capacity likely to be around

30 gigawatt-hours to 45 gigawatt-hours.

September 2022 60


China’s factory

activity

unexpectedly

sinks to weigh

on weak

economy

Chinese manufacturing’s recovery from

COVID-19 shutdowns unexpectedly faltered

in July as activity sank, a survey showed,

adding to pressure on the struggling

economy as fresh virus flare-ups and a

darkening global outlook weighed on

demand.

Factory activity was depressed by weak

global demand and anti-virus controls

that are weighing on domestic consumer

spending, according to the national

statistics agency and an official industry

group, the China Federation of Logistics &

Purchasing.

A monthly manufacturing purchasing

managers’ index (PMI) issued by the

federation and the National Bureau of

Statistics (NBS) retreated to 49 in July from

June’s 50.2. Sub-measures of new orders,

exports and employment declined.

Readings below 50 on a 100-point scale

indicate activity declining. The July figure

marked the lowest in three months.

“Downward pressure is great,” said

economist Zhang Liqun in a statement

issued by the Federation. “The impact of

the epidemic is still on the rise.”

“The level of economic prosperity in China

has fallen, the foundation for recovery

still needs consolidation,” NBS senior

statistician Zhao Qinghe said in a statement

on the NBS website.

Continued contraction in the energyintensive

industries, such as petrol, coking

coal and ferrous metals, contributed most

to pulling down the July manufacturing

PMI, he said.

Sub-indexes for output and new orders

fell by 3 points and about 2 points in July,

respectively, while the employment subindex

edged down by 0.1 point.

Weak demand has constrained recovery,

Bruce Pang, chief economist and head of

research at Jones Lang Lasalle Inc, said

in a research note. “Q3 growth may face

greater challenges than expected, as

recovery is slow and fragile,” he added.

The official non-manufacturing PMI in

July fell to 53.8 from 54.7 in June. The

official composite PMI, which includes

manufacturing and services, fell to 52.5

from 54.1.

China’s economy barely grew in the second

quarter amid widespread lockdowns, and

top leaders recently signaled their strict

zero-COVID-19 policy would remain a top

priority.

Policymakers are prepared to miss their

GDP growth target of “around 5.5%” for

this year, state media reported after a

high-level meeting of the ruling Communist

Party.

The party has stopped talking about this

year’s official growth target after output

shrank in the three months ending in June

compared with the previous quarter.

The slowdown, which raises the risk of

politically volatile job losses, adds to

challenges for Beijing ahead of a ruling

party meeting in October or November

when President Xi Jinping is expected to try

to break with tradition and award himself a

third five-year term as party leader.

Beijing’s decision to drop mention of the

target has doused speculation that the

authorities would roll out massive stimulus

measures, as they often have in previous

downturns.

The ruling party has promised tax rebates

and other aid to help entrepreneurs after

anti-virus controls temporarily shut down

Shanghai and other industrial centers

starting in late March.

Faltering recovery

Capital Economics says that policy restraint,

along with the constant threat of more

lockdowns and weak consumer confidence,

is likely to make China’s economic recovery

more drawn-out.

After a rebound in June, the recovery

in the world’s second-biggest economy

has faltered as COVID-19 flare-ups led to

tightening curbs on activity in some cities,

while the once mighty property market

lurches from crisis to crisis.

Chinese manufacturers continue to

wrestle with high raw material prices,

which are squeezing profit margins, as

the export outlook remains clouded

with fears of a global recession. China’s

southern megacity of Shenzhen has

vowed to “mobilize all resources” to curb

a slowly spreading COVID-19 outbreak,

ordering strict implementation of testing

and temperature checks, and lockdowns

for coronavirus-hit buildings. The port of

Shanghai, the world’s busiest, says activity

is back to normal, but factories and other

companies are operating under anti-virus

controls that limit their workforces and

weigh on production. The port city of

Tianjin, home to factories linked to Boeing

and Volkswagen, and other areas tightened

curbs this month to fight new outbreaks.

According to World Economics, the

lockdown measures had some impact

on 41% of Chinese companies in July,

though its index of manufacturing business

confidence rose significantly from 50.2 in

June to 51.7 in July.

September 2022 64


Microchip

shortages hit

Renault sales

French carmaker Renault said that sales of

its conventional and electrical vehicles fell

in the first half of this year, impacted by the

worldwide shortage of semiconductors.

It said it sold 1,000,199 units in the first

half of 2022, down 12 percent compared to

the same period last year.

The data for both years did not include

sales in Russia.

Renault said the dip in sales comes “in a

context disrupted by the semiconductor

crisis and marked by the shutdown of the

group’s activities in Russia”.

Semiconductors are electronic components

that are indispensable in both conventional

petrol-powered and electrical vehicles.

The global shortage of such parts has

forced carmakers around the world

to throttle and even halt production

temporarily.

Renault said its own brand continued

to post strong growth in the electrified

market.

“Electrified markets are booming in Europe

and Renault is well placed to meet this new

customer demand with suitable products,”

said Fabrice Cambolive, deputy chief of the

Renault brand.

“In the second half of the year, we will

accelerate the electrification of our range

with the launches of the all-New Megane

E-Tech electric, Kangoo E-Tech electric and

New Austral,” Cambolive said.

The E-Tech range - electric vehicles and

hybrid powertrains - accounted for 36

percent of passenger car sales in Europe

in the first half of 2022, compared with 26

percent in 2021, Renault said.

September 2022 66


Rolls-Royce

names Turkish

national as CEO

Rolls-Royce has appointed Turkish national

Tufan Erginbilgiç as the chief executive

officer and an executive director of Rolls-

Royce Holdings plc.

“Erginbilgiç will take up his new role on Jan.

1, 2023, succeeding Warren East who, on

Feb. 24, 2022, announced his intention to

step down at the end of this year,” Rolls-

Royce said in a statement.

Tufan, who has a background in

engineering, has built his career in

international business including over 20

years with BP, with five years as part of its

executive team.

In his last role before leaving in 2020, he

led BP’s downstream business, which

included refining, petrochemicals, service

station network, lubricants, midstream

operations and the Air BP jet fuel

operation.

He has held several non-executive

directorships in heavy industry and

manufacturing companies, including at

aerospace technology group GKN.

Erginbilgiç is currently a partner at Global

Infrastructure Partners (GIP), a private

equity firm that focuses on large-scale

investments in infrastructure businesses

and manages $81billion for investors.

Tufan Erginbilgic is currently a nonexecutive

director of multinational

transport vehicle manufacturer Iveco

Group NV; energy, healthcare and

technology group DCC plc; and energy

company Türkiye Petrol Rafinerileri A.Ş

(Tupras). Tufan will be reviewing his

involvement in these positions.

“I am honored to be joining Rolls-Royce

at a time of significant commercial

opportunity and strategic evolution as its

customers embrace the energy transition,”

Erginbilgiç said.

“He is a proven leader of winning teams

within complex multinational organizations,

with an ability to drive a high-performance

culture and deliver results for investors,”

said Anita Frew, Rolls-Royce chair.

Erginbilgiç is currently a non-executive

director of multinational transport vehicle

manufacturer Iveco Group NV, energy,

healthcare and technology group DCC

plc, and energy company Tüpraş, Rolls-

Royce said, adding that Erginbilgiç will

be reviewing his involvement in these

positions.

September 2022 68


Global

chipmakers face

high volatility,

Fitch says

Global semiconductor manufacturers

face heightened revenue and cash flow

volatility, Fitch Ratings said in a statement.

Some of the major reasons for volatility are

supply chain issues, elevated protectionism

measures from some countries, geopolitical

instability, and monetary and fiscal policy

interventions by governments, the rating

agency said in a statement.

On the demand side, weakening consumer

electronics, computer and smartphone

sales are weighing on chipmakers, causing

them to reduce their capital expenditures,

it added.

The US government’s $52 billion CHIPS

and Science Act passed into law should

accelerate semiconductor capacity

production in the country, Fitch said.

“The Act follows similar actions taken

by the EU designed to wean the

semiconductor supply chain from an

overreliance on southeast Asia and relieve

market constraints,” it added.

Fitch noted that government investment

and support in some Asian countries have

reshaped the semiconductor industry in

the past 20 years, during which the US’

share in the global chip manufacturing

sector declined to the low teens from the

mid-30% range.

In the near-term, chip manufacturers also

risk overinvesting in production capacity

and a global economic downturn, the

agency said.

“Slowing global economic growth and

aggressive capacity additions could reverse

the favorable semiconductor supply/

demand environment heading into 2023,

resulting in excess capacity that could

persist into 2024-2025,” the statement

said. The global economy has been

struggling with a semiconductor shortage

since the beginning of the COVID-19

pandemic as chip factories were shut

down. The reopening caused a surge in

global demand amid limited supply.

The chip crisis affects 169 industries in

one way or another, from electronics to

automotive and healthcare equipment,

according to Goldman Sachs, a US

multinational investment bank and

financial services company.

September 2022 72


Tax on some

imported EVs

raised

An additional 10 percent customs duty

has been imposed on electric vehicles that

are imported from countries with which

Türkiye does not have customs union and

free trade agreements.

The respective presidential decree was

published in the Official Gazette and came

into force. The prices of EVs imported from

countries such as China, Japan, the U.S.,

India, Canada and Vietnam, will increase as

a result of the additional tax.

Accordingly, the customs duty imposed on

EVs imported from China and Japan was

raised to 20 percent.

The prices of those vehicles which are

subject to the additional tax will push up

prices by at least 10 percent, people from

the industry said, noting that this will also

apply to Tesla’s Model 3, which is being

produced at its Shanghai plant and is

expected to be introduced to the Turkish

market soon.

Several new EV models, mostly from China

and Japan, will start to be sold in Türkiye at

the end of this year and in 2023, and the

latest move on additional tax will impact

those models’ competitiveness in the local

market, the people said.

They noted that low-cost Chinese EVs have

been dominating the markets for years

and the additional tax may affect their

attractiveness. This, however, may work to

domestically produced EV Togg’s advantage

in the long run, they said.

TOGG is expected to hit the roads in March

next year.

“Customers’ appetite for the EVs imported

from the Asian country will diminish in

the medium-term as a result of the hike

in the tax and those Asian EV companies

may channel their cars to Europe, where

demand is strong for EVs. They may lose

their interest in the Turkish market,” said

Kağan Dağtekin, CEO of Doğan Trend

Otomotiv, which distributes Chinese

electric vehicle MG.

EV sales in Türkiye may reach around 4,500

units, Berkan Bayram from the Electric

and Hybrid Vehicles Association (TEHAD)

predicted recently.

In the first six months of 2022, the number

of registered electric vehicles increased by

170 percent from a year ago to 2,413. In

the whole of 2021, 2,846 electric vehicles

were sold in Türkiye.

September 2022 74


China plans

3-tier data

strategy to avoid

US delistings

China plans to sort U.S.-listed Chinese companies based on the sensitivity of the data

they hold in an attempt to stop U.S. regulators from delisting hundreds of firms.

The three-tier system aims to bring Chinese companies into compliance with U.S. rules

that would require public companies to let regulators inspect their audit files, the

Financial Times said, citing four unnamed people with knowledge of the situation.

The three broad categories include companies with nonsensitive data, sensitive data

and secretive data, the newspaper said.

Washington has long demanded complete access to the books of U.S.-listed Chinese

companies, but Beijing, citing national security concerns, bars foreign inspection of

working papers from local accounting firms.

September 2022 76


Türkiye’s Togg showcases smart concept car in Istanbul

Türkiye’s first indigenous automobile brand

Togg is showcasing its smart vehicle in

Istanbul following its debut at the 2022

Consumer Electronics Show (CES), the

consortium announced.

The concept car is being exhibited to

visitors at Zorlu Center shopping mall on

the metropolis’ European side.

Togg said in a statement that its “Concept

Smart Device is waiting to meet everyone

face to face at Zorlu Center from today

onwards” after taking the global stage at

the 2022 Consumer Electronics Fair, an

event it described as “the meeting of the

technology world.”

Making its international debut in January,

the consortium developing the indigenous

car, Türkiye’s Automobile Joint Venture

Group, known as Togg, showed off the

“Transition Concept Smart Device,” an allelectric

fastback concept car.

Designed by the world-renowned

Italian car design firm and coachbuilder

Pininfarina, the car joins Togg’s previously

unveiled compact-size electric SUV and

Sedan concepts.

The domestic car has already attracted

great interest from those who visited the

shopping mall to see the design.

One of the visitors, Yılmaz Arı, told public

broadcaster TRT Haber that he wants the

car to be on the market as soon as possible.

“There is very serious work here. There

is very serious technology. It looks more

luxurious than the cars I have seen in the

luxury class so far,” he said.

Arı said he traveled from Kartal to see it, a

district on the other edge of Istanbul, and

that the car was “beyond expectations.”

Burak Öztürk, another visitor seeing the

Togg for the first time, was also very

impressed.

“It looks very impressive in terms of both

the interior and the exterior design. We

look forward to it going on sale. The sedan

model is a vehicle produced for Türkiye,”

he said.

The slick design of the “Transition Concept

Smart Device” is highlighted by the

pillarless suicide-style rear doors.

The illuminated Togg logo, meanwhile,

is unique to the car and represents

the unification of Eastern and Western

cultures.

Togg aims to produce one million vehicles

in five different segments by 2030 and will

launch its first mass-produced vehicle, an

SUV, by the end of 2022.

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.

September 2022 78


Turkey, UAE

space agencies

ink deal for

cooperation

The Turkish Space Agency (TUA) and

the United Arab Emirates Space Agency

(UAESA) signed a memorandum of

cooperation on the “peaceful use of

space, space science, technology and

applications.”

The signing ceremony was attended by

Industry and Technology Minister Mustafa

Varank and his Emirati counterpart Sultan

Ahmed al-Jaber, as well as several other

high-level officials.

In line with the memorandum of

cooperation, the two countries will

cooperate on training human resources and

share information and experience in the

field of space exploration. Joint research

and development (R&D) studies will be

carried out on suborbital flights, launch,

rocket and imaging satellite systems.

“We have come to this beautiful country

and Istanbul to further strengthen the

strong ties between the two countries,” the

Emirati minister said and thanked Varank

and the Turkish Ministry of Industry and

Technology for their invitation.

Noting that the meeting also paved the way

to explore possible areas of investment in a

wide range of sectors, the minister further

said that both Turkey and the UAE were

connected through close social, economic,

commercial and cultural ties.

“Our countries share a common vision so

that the peoples and the regional countries

could benefit from sustainable economic

growth. The trade figures between the two

countries also confirm that,” he added.

September 2022 82


Turkish Cargo

ranked 4th

among global

airfreight

companies

Turkish Cargo ranked fourth in June among

the world’s top 20 airfreight companies,

with a share of 4.8 percent in the global

market.

The global airfreight sector contracted

6.9 percent, Turkish Airlines said in a

statement, citing the World Air Cargo Data

(WACD).

“The success of Turkish Cargo showed our

determination to turn Türkiye into a center

of the global air cargo industry,” said Ahmet

Bolat, chair of the Turkish Airlines board

and executive committee.

Türkiye will play a greater role in the global

air cargo sector thanks to its geographical

location and infrastructure, Bolat added.

“We will achieve the target of becoming

one of the top three airfreight companies

in the world by 2025,” he said.

The statement noted that Turkish Cargo

handled one out of five cargos in the world

and grew 18 percent in terms of sales

tonnage from a year ago, according to the

statement.

Turkish Cargo ranked second in the United

Arab Emirates market and third in India, it

added. The statement noted that Turkish

Cargo has grown strongly after 2010 and

decoupled positively from its competitors

during the COVID-19 pandemic.

Turkish Cargo ranked 33rd in the world in

2010 according to IATA data, but it climbed

up the ladder to claim the 10th spot in the

global ranking with a market share of 3.2

percent in 2017 based on the WACD data,

the statement said. The company further

consolidated its position in the global

market with 4.8 share, ranking fourth in

June this year.

Turkish Cargo also increased the number

of its direct cargo destinations by some 37

percent to more than 100.

September 2022 84


Volkswagen

takes on US,

China rivals with

battery factory

Volkswagen celebrated the beginning of

work on its first in house battery factory,

as the German auto giant looks to head off

competition from U.S. and Chinese electric

vehicle upstarts.

The firm plans to “steer the worldwide

battery offensive” from the new plant in

Salzgitter in central Germany, CEO Herbert

Diess told a ceremony on July 7 attended by

German Chancellor Olaf Scholz.

Volkswagen has set itself the ambitious aim

of becoming the world’s biggest electric car

manufacturer by 2025, pouring a total of 46

billion euros ($46.8 billion) over the next five

years into the drive. The Salzgitter complex,

where currently thousands of combustion

engines roll off the factory line every day, is

set to be the centre of Volkswagen’s electric

ecosystem.

Two billion euros are being invested in

the battery plant through 2026, with the

potential for the site to turn out batteries for

500,000 vehicles a year. The plan will also

serve as a blueprint for a fleet of battery

plants in Europe. Up until now both legacy

carmakers like Volkswagen have largely

relied on Asian, notably Chinese, battery

makers to fit their vehicles. Volkswagen’s

new PowerCo unit plans to invest more than

20 billion euros together with partners, with

the aim of generating annual sales in excess

of 20 billion euros and employing up to

20,000 people in Europe alone.

Türkiye’s current account registers

$3.4 billion deficit in June

Türkiye’s current account recorded a deficit of nearly $3.46 billion

(TL 62.13 billion) in June, official data showed, as soaring energy

prices widen the shortfall.

The gap increased by 191% year-over-year from $1.2 billion in June

of last year, mostly due to rising costs of energy imports, triggered

by Russia’s invasion of Ukraine. Yet, the deficit slipped from the

nearly $6.57 billion shortfall in May.

The 12-month total current account gap widened to $32.7 billion

from $30.4 billion in May, the data from the Central Bank of the

Republic of Türkiye (CBRT) showed. In 2021, the deficit was $14.9

billion. The January-June shortfall stands at $32.4 billion, a twoand-a-half

times increase versus the same period of last year.

The June figure also stemmed from a marked rise in the goods

trade deficit, which grew by around $4.8 billion to reach $6.4

billion, the bank said, up from $1.63 billion a year ago.

The gold- and energy-excluded current account posted a $4.2

billion surplus, versus a surplus of over $1.9 billion in the same

month of last year.

Services posted a surplus of $4.02 billion in June, backed by

tourism, which generated $2.73 billion in revenue.

Meanwhile, direct investment recorded a net inflow of $950 million

while portfolio investment posted a net outflow of $1.6 billion, the

data showed.

Net errors and omissions, or capital movements of unknown origin,

showed monthly inflows of $3.98 billion, taking the January-June

inflows to around $17.5 billion

Official reserves recorded a net outflow of $1.96 billion, the bank

said. The government says Türkiye’s chronic current account deficit,

which stood at $14.9 billion last year, will turn into a surplus under

its economic plan that prioritizes growth, exports and employment,

with low interest rates.

September 2022 86


Financial Stability Committee

keeps eye on global inflation

The Financial Stability Committee convened

to discuss the impacts of global inflation

and commodity prices on Türkiye’s

macroeconomic indicator as well as

the latest developments in the banking

industry, it said in a statement.

The committee members met for a fifth

time on July 25, chaired by Treasury

and Finance Minister Nurettin Nebati,

to assess the effects of global economic

developments on the country’s financial

system. The statement, issued by the

Treasury and Finance Ministry, added that

the committee also discussed the effects

of the global monetary tightening on

developing nations.

Türkiye’s Central Bank kept its policy

rate (one-week repo rate) unchanged

at 14 percent. The annual inflation rate

quickened from 73.5 percent in May to

78.6 percent in June, when consumer

prices advanced 4.95 percent monthly.

The monetary authority delivered its last

interest rate change in December 2021,

when it cut the policy rate by 100 basis

points from 15 percent to 14 percent.

The European Central Bank (ECB), on the

other hand, on July 21 brought an end to

the era of negative interest rates in the

eurozone with a bigger than expected halfpoint

hike to combat soaring inflation.

The more aggressive move, the ECB’s first

rate hike since 2011, reflected an updated

“assessment of inflation risks,” the ECB

said.

‘Banking sector resilient’

The latest developments in the country’s

insurance and banking sectors were also

discussed, according to the statement

issued by the Finance Ministry.

“The main indicators of the Turkish

banking industry remain strong and the

contributions of the insurance sector and

capital markets to the economy continues,”

it said.

The committee assessed the impacts of the

macroprudential policies on credit markets

and access to financing, the statement

added.

The banking sector’s profit was 132 billion

Turkish Liras in January-May, data from the

Banking Regulation and Supervision Agency

(BDDK) showed, surging from the industry’s

combined net profit of 24.7 billion liras a

year ago.

The capital adequacy ratio in the industry

was 18.15 percent, while the nonperforming

loans/total loans ratio was 2.61

percent as of end May.

“The committee will continue to ensure

that its members act in cooperation and

collaboration in taking the necessary

steps within the policy framework,” the

statement concluded.

September 2022 90


A trusted industry leader in

the automotive aftermarket

industry: UCEM Automotive

UCEM Automotive produces gaskets

-which is an important part of automotive

industry- for last 25 years. 80% of their

sales goes to export markets. The company

plans to expand their exports.

Mesut Mutluşan, General Manager of

UCEM Otomotiv, Eurogasket evaluated

their current position in Turkey and abroad

in the automotive aftermarket industry and

their aims.

Can you tell us about your production and

products group?

We are a leading company in the sector

for 40 years. We are especially producing

gaskets -which is an important part of

automotive industry- for last 25 years.

Cylinder head gaskets, valve cover gaskets,

full set, gear gaskets, compressor gaskets,

manifold gaskets and repair kits are some

of the products in our range.

Mesut Mutluşan, who took over the

management from his father Ali Mutluşan,

now manages the company with his son

Alican Mutluşan. Our company continues

to be active in both domestic and foreign

markets by reaching its targets as soon

as possible with its young, dynamic and

experienced team.

What is your monthly production

capacity?

Monthly production capacity of our factory

is 50,000 cylinder head gasket, 3,000 full set

gaskets, 15,000 oil pan gaskets. Every step

is taken in our company for increasing our

capacity in order to meet increasing sales

performance. Now we are in a program of

capacity increase by expanding our machine

lines, increasing human resources and

productivity planning. Until 1990, we were

the representative of factories such as Iskra

– Tam – Torpedo – Papfeda Tesanj – Ricard

Bencic – Fap Famous in Yugoslavia which is

a manufacturer of the German automotive

industry in Turkey with the Yugoslav civil war

that started in 1991, we started exporting

automotive spare parts to Yugoslavia which

we had previously imported but production

stopped with the war. After establishing

UCEM Automotive Company in 1993, we

started to produce sub-industry gaskets for

Deutz – Man – Mb – Volvo – Scania Renault

– Iveco by adhering to German quality.

In 2007 we were at 6.000 mt where we are

now by moving to our closed area factory

we have completed our gasket production

by Victor Reinz, Dph, Fisher, Plath, Frenzelit,

Carteco, etc. we have improved our

quality by using auxiliary products and raw

materials.

How has the pandemic affected your

company? What changes have you

observed in your current markets and

export volume?

We are all in the same ship. As every sector,

automotive sector is also effected negatively

by this pandemic. Our export sales was

shrinked 40% and we could not get orders

from some of our markets during the first

year of the pandemic. Some markets are

just coming to life. But besides, there also

have been markets which never lost their

capacity. We hope that Omicron variant

does not become a serious threat on

the markets and the world gets over this

pandemic soonest. We have an intensive

exhibition program every time. We will

exhibit in Automechanika Frankfurt and we

will showcase our all kind of gaskets.

September 2022 92


Hit by China

shutdow, Tesla

boosts auto

prices, sells

bitcoin

Tesla reported solid quarterly earnings

despite a hit from COVID-19 lockdowns

in Shanghai that CEO Elon Musk said

prompted the company to liquidate most

of its bitcoin holdings.

Musk, who has generated recent headlines

over his controversial withdrawal from

a $44 billion acquisition of Twitter, said

the company had navigated a tricky

environment with the Shanghai closure and

lingering supply chain problems that have

raised costs.

The electric vehicle maker reported

second-quarter profits of $2.3 billion,

about twice that in the year-ago period

as the automaker lifted car prices to

“embarrassing” levels, as Musk put it.

Although Tesla profits topped estimates,

they lagged behind those in the first

quarter, the first sequential profit drop

since late 2020, which coincided with a fall

in automotive profit margins due to rising

costs. And while revenues jumped 42% to

$16.9 billion, they came in below the $17.1

billion projected by analysts.

Musk described the period as a “unique

quarter,” but told investors and analysts

on a conference call that the restart of the

Shanghai plant and the ramp-up of new

factories in Germany and Texas initiates

“the potential for a record-breaking second

half of the year.”

The company cited the drag from Shanghai,

where its factory was shuttered for part of

the quarter. But Tesla said it finished the

three-month period with “a record monthly

production level” after the China restart.

Tesla said supply chain challenges

remain an ongoing headache, as factory

shutdowns, labor shortages, logistics

and other issues “limited our ability

to consistently run our factories at full

capacity.”

During the quarter, Tesla liquidated about

75% of its holdings in bitcoin, the value of

which has declined sharply in 2022, adding

$936 million cash to its balance sheet.

The moves on bitcoin resulted in one-time

costs of $106 million, said Chief Financial

Officer Zachary Kirkhorn.

Musk attributed the move to the need to

raise cash because of the uncertainty of

when Shanghai operations would return.

The sale “should not be taken as some

verdict on bitcoin,” Musk said at the outset

of the call.

But cryptocurrency is a “side show to

the side show” compared with the goal

of accelerating the energy transition,

said Musk, who pointed to the scorching

heat now plaguing many countries as

underscoring the need for change.

Torrid demand for Musk’s electric vehicles

has allowed Tesla to pass on higher prices

to consumers.

In the United States, Tesla’s cheapest

vehicle, the Model 3, starts at nearly

$50,000.

“We’ve raised our prices quite a few times,

they’re frankly at embarrassing levels.”

Musk said. “But we’ve also had a lot of

supply chain and production shocks and

we’ve got crazy inflation.

“I am hopeful – this is not a promise or

anything, but I’m hopeful that at some

point we can reduce the prices a little bit,”

he said.

Several analysts had viewed the second

quarter as the weakest of the year for Tesla

in the aftermath of the Shanghai factory

lockdown and other supply chain issues.

But many Tesla watchers are bullish on

the second half of 2022 in light of the

company’s growing production profile.

CFRA Research analyst Garrett Nelson told

Agence France-Presse (AFP) the second

quarter was “especially impressive” given

the headwinds of the Shanghai closure

and the costs of upping production at new

plants.

Musk has shown boundless confidence

in Tesla’s ability to shake up the auto

market, leading the company as it has met

production targets on its core product,

even as the cars remain too expensive for

many consumers.

But Musk has been less enthusiastic of late

about the economy as a whole, a recession

“appears more likely than not” and

confirming plans to reduce the company’s

salaried work force by about 10%.

Most recently, the controversial CEO has

become embroiled in a messy fight with

Twitter after withdrawing his takeover

bid. The case will go to trial in October to

determine Musk will be forced to complete

the transaction.

September 2022 94


Energy efficiency

investments

save $372

million last year

Investments of $1.3 billion aimed at energy

efficiency helped Türkiye save $372 million

in 2021, according to data from the Energy

and Natural Resources Ministry.

Türkiye launched its National Energy

Efficiency Action Plan in 2018, which

targets to increase efficiency in buildings,

industry, transport, agriculture and other

sectors. According to the ministry’s

calculations, investments in energy

efficiency pay off in five years.

Thanks to the $1.3 billion worth of energy

efficiency investments, 43 million tons

of greenhouse gas emissions have been

prevented and 12,000 jobs were protested.

Energy and Natural Resources Minister

Fatih Dönmez recently unveiled a scheme

to encourage people to undertake energy

efficiency measures in residential dwellings.

Under the Heat Insulation Loan Package,

financing of up to 50,000 Turkish Liras

per apartment will be provided at a 0.99

interest rate with a maturity of 60 months.

The latest provisional data from the Trade

Ministry showed that Türkiye spent more

than $7.7 billion on energy imports in July,

up nearly 96 percent from $4 billion in the

same month of 2021.

In the first seven months of 2022, the

country’s energy import bill grew nearly

145 percent on an annual basis to $55.6

billion. In 2020 and 2021, Türkey’s energy

imports stood at $28.9 billion and $50.7

billion, respectively.

September 2022 96


Derman manufactures

products and trains people

Devran Engine Bearings and Bushings

Industry produces the products that

many brands need, and also trains

useful people for the country by

investing in the education sector.

Devran Motor Bearings and Bushings

Industry, which has been manufacturing

quality products for the automotive

sector for more than 50 years, produces

spare parts for vehicles in many different

segments, especially automobile, light

commercial, truck, bus, heavy commercial,

tractor, agricultural machinery. Pointing

out that they supply spare parts to more

than 100 countries, mainly in Europe, Asia

and Africa, Murat Tetikli, the company

representative, supplied information about

the development process of the sector and

their own brands.

Could you briefly introduce your

company? How do you provide services to

the automotive aftermarket industry?

Devran Engine Bearings and Bushings

Industry was founded in 1967 by our

grandfather Mustafa Tetikli. Our company,

which was established to serve in the

field of automotive spare parts, still

continues its customer satisfactionoriented

production activities on a total

area of 26,000 square meters, of which

20,000 square meters part is open and

6,000 square meters part is closed. Our

company, which continues its production in

accordance with ISO 9001 and IATF 16949

quality certificates with its experience

and quality, has taken its place among

the priority preferences of domestic and

foreign main industry, assembly and subindustry

companies.

Devran and Wildcat branded products

mainly addresses to companies that

manufacture products such as automobiles,

light commercials, trucks, buses, heavy

commercials, tractors, agricultural

machinery, construction equipment, ships,

railway transport vehicles, generators,

compressors, water and oil pumps, and

supply spare parts. Our company offers fast

solutions with its dynamic R&D structure in

order to respond to developing technology,

new vehicle types and changing customer

demands.

Which countries and regions do you

export to?

Along with exporting to Europe, Asia and

Africa continents, we supply spare parts to

more than 100 countries together with the

September 2022 100


spare parts wholesalers we cooperate with.

Thanks to the expansion of the world’s

transportation network and internet

networks, we connect with every point in

the world.

Will you have new investments?

The investments we have made on the

basis of technology, capacity expansion,

and knowledge-based information for the

engineers we work with continue rapidly in

an integrated manner. If you want to grow,

the basic rule is to invest in your business.

Investing in people in the first place always

makes us stronger.

We would also like to know about your

activities outside the sector. What are

those if you have any?

Apart from his commercial activities,

Mustafa Tetikli has also made serious

investments in the education sector due to

the value he gives to raising people. Devran

College was opened in 1998, and every day

it educates young talents for our country,

open to development and innovation.

Apart from this, we also have some

investments in the construction sector. Our

main idea is to be quality-oriented in every

attempt we make.

Can you evaluate the automotive

industry? What is the position of the

sector in the world? Where is Turkey in

this regard?

The development of countries around

the world is evaluated by looking at their

industries. The automotive sector also

forms the backbone of the industry. We are

a company that sees German technology

as a guide. At the same time, we are a

company that does not hesitate to share

our own knowledge and experience. Our

country is currently in competition with

Italy in the supply of spare parts. It is

possible to foresee that it will leave many

European countries behind in the next

50 years. When we look at it in a regional

and global sense, our country’s location

at the center of the world, the ease of

transportation network, the political

distance between the east and the west in

the recent period, made us a bridge. Our

aim is to reach an even higher levels with

a management style that always and fully

support domestic production by turning

this into an advantage.

Is there anything that you would like to

add and underline?

We continue on our way under the

leadership of Cevdet Tetikli. As the 3rd

generation, we continue to work with

enthusiasm. As all employees, we are

happy to contribute to both the defense

industry and the spare parts sector in order

to move domestic production forward

in accordance with the slogan of Cevdet

Tetikli, “We are local, we are national and

we are of high quality”. I would like to say

that while we fully support our country’s

recent initiatives in the automotive sector

(TOGG), we are ready to provide all kinds

of support if necessary. Our main goal is to

be a productive person as a family. Quality

is never accidental. It is always the result

of smart efforts. The person who loves his

country the most is the person who does

his job best.

September

101 2022


What does

semiconductor

material do for

the automotive

industry?

While the global chip crisis is on the top of

the agenda of many industries, US Speaker

of the House Nancy Pelosi recently visited

Taiwan, which has upset China. In a series

of statements, China has made it clear that

Taiwan buddying up with the US would be

addressed.

Taiwan island accounts for 92% of

advanced semiconductor material

manufacturing and nearly 63% of the

global chip-making market share.

Taiwan has relied on its dominance of the

microchip industry for its defense. The

“silicon shield” theory argued that because

its semiconductor industry is so important

to Chinese manufacturing and the United

States consumer economy, actions that

threaten its foundries would be too risky.

However, the Taiwan Semiconductor

Manufacturing Company (TSMC) is

generally considered to be the largest

microchip manufacturer in the world.

Taiwan Semiconductor currently

dominates the market in the production of

the most advanced types of semiconductor

chip

There are fears that the semiconductor

industry, which is very exposed to geopolitical

tensions in Taiwan, will become

collateral damage should China steps up

pressure on Taiwan.

“Dealer lots are empty,” said Jessica Kelly,

who has spent more than 20 years in the

automotive industry, most recently as the

senior director of offering management in

advanced driver-assistance systems at NI

(National Instruments). “I’ve never seen

anything like this before.”

Speaking at the Future Compute

conference hosted by MIT Technology

Review, Kelly outlined the varied roots of

the semiconductor chip shortage, its effects

on the auto industry and beyond, and how

companies are adapting as the shortage

persists.

This story holds near-universal value given

so many sectors of the economy rely on

microchips. “We’ve had to figure out what

we can we do to get out of this situation,

but we’ve also had to think longer-term

so we don’t find ourselves back here,” she

said. “That means looking at different ways

to produce, more efficient ways to produce,

different ways to design the product.”

The problem: high demand for a timeintensive

product

No single cause accounts for the microchip

shortage. COVID-19 has had an outsized

effect on the problem, as factories and

ports closed while millions of people

worldwide established home offices. But

other contributors include labor shortfalls,

lack of raw materials, trade tensions, and

the growth of 5G electronics, which require

more chips than previous generations of

devices.

Microchip assembly comprises roughly 700

steps over a 14-week period.

All these supply chain issues rest on a more

foundational constraint: the process of

fabricating crystals for silicon wafers, which

are used in microchips. These grow at a

fixed rate, and though microchip assembly

comprises roughly 700 steps over a 14-

week period, the bulk of this time is tied up

September 2022 102


in waiting for crystals to grow.

“It’s physics. You can’t speed it up,” Kelly

said. “You can add more people. You can

add more equipment. But if you don’t

have that front-end product to supply to

the back end, then you’re not going to get

anywhere.”

For the automotive industry in particular,

this challenge has been complicated by

the fact that as regulatory and consumer

pressures make cars ever smarter, they rely

on a growing number of electronics. At the

same time, the industry only uses 5% to

10% of annual semiconductor production;

most chips go to consumer electronics.

Once car companies began to restart idle

assembly lines and ramp up production,

they found themselves at the back of a long

queue.

“So, what do you do?” Kelly said. “You can’t

just say, ‘I’m sorry, customer. I can’t give

you anything.’”

Most immediately, companies are taking

whatever microchips they can get and then

building more adaptive manufacturing

processes to deal with the obstacles that

arise from this indiscriminate approach. If

a machine on the assembly line is designed

to handle chip components that arrive

packaged a certain way, for instance, but

all that’s available are components from a

different supplier with different packaging,

then companies will scoop up the available

supplies and retool their machine to

handle the new product. Companies are

also looking into ways in which rewriting

software might patch some of the

shortage; perhaps code can be rewritten

in such a way that a single chip can do

more work than it formerly did. Expedited

shipping is also an area where companies

have been forced to get innovative. “I

have, unfortunately, seen helicopters land

in a parking lot to take a product from A

to B,” Kelly said. Finally, when necessary,

car manufacturers are simply delivering

products without the full array of features.

A rearview camera might ship without

augmented reality; USB ports might be

missing, or hands-free driving limited. This

final option, though, is often paired with

the possibility of component installation

down the line.

“Can it be produced without the

component and then added later — so

rework, repair, retrofit?” Kelly said. “This,

admittedly, presents a huge cost: Not only

are these companies paying labor, but then

they have to take the car back into the

facility and do the underlying calibration.”

Finally, in the long term, Kelly noted the

trend among companies like Intel, which is

looking to both redesign semiconductors

to be less dependent on certain critical

resources while also building new

fabrication plants in the U.S. for localized

production. (A vast majority of chips are

made in Taiwan.)

There have been calls for government

funding for new chip manufacturing

companies in the U.S., and a group of

investors has established a nonprofit

venture capital fund, America’s Frontier

Fund, to invest in chip-making in the U.S.

This “reshoring” is happening not only in

the U.S., but in regions around the world

hit by the microchip supply shock, Kelly

said. In the end, rapid and innovative

responses have been able to bolster the

auto industry against the most catastrophic

effects of the microchip shortage. But Kelly

said she does not expect the crisis to go

away anytime soon — 2023 if we’re lucky,

she suggested.

“Until we can stabilize the amount of

supply out there, we’re going to continue

to see these effects,” she said. “I would

love to say by the end of this year, we’re

going to see normal. We aren’t.”

Volvo Cars, one of Europe’s top car brands,

says it’s past the worst of a chip supply

crunch that placed a tremendous squeeze

on auto production.

The company’s semiconductor inventory is

now “back at fully supply,” CEO Jim Rowan

told CNBC’s “Squawk Box Europe.”

“We had guided in the first quarter

we were affected by one specific

semiconductor which hampered

production across most of our range,”

Rowan added.

“We had forecasted by and large we would

be through that by the end of the second

quarter, and that’s what we’ve seen. We

are through those semiconductor issues.”

Semiconductors have been in short supply

for the better part of the last two years

due to a litany of issues with global supply

chains caused by the Covid-19 pandemic.

This took a toll on the auto industry,

which has become increasingly reliant

on semiconductors to control everything

from the braking system to more high-tech

features like interactive displays.

Volvo Cars, which plays in the more luxury

end of the automotive sector, posted a

mixed set of second-quarter results . The

firm saw a 27% slump in retail sales, with

143,006 units sold in the three months

through to June, and a 2% drop in revenues

to 71.3 billion Swedish krona ($7 billion).

The automotive industry has likely been

impacted the most by the chip shortage.

Depending on its level of connectivity,

the average car can have more than

100 chips on board, with many vehicles

requiring thousands of semiconductors

to control safety features, the electrical

and powertrain systems, infotainment,

connectivity, and more.

As TSMC spokesperson told, the roots of

the industry’s current chip challenges date

back to 2018. Everything was becoming

connected, from packaging to refrigerators,

and smartphone demand was skyrocketing,

but demand for cars was soft. To meet the

need, semiconductor manufacturers began

allocating more supply of now-critical

automotive components like MCUs to other

industries. This became a huge problem

when car demand jumped unexpectedly

in the last quarter of 2020 and continued

through the first half of 2021 thanks to low

interest rates and consumers having more

expendable income than they anticipated.

September

2022

104


Rimac Nevera #001 Delivered to 2016 Formula One World

Champion and sustainability entrepreneur, Nico Rosberg

Just a month after the first productionready

Rimac Nevera, #000, rolled out

of Rimac’s facility in Zagreb, Croatia, car

#001 has been delivered to its owner –

2016 Formula One World Champion and

sustainability entrepreneur Nico Rosberg.

Prior to the car being sent to his home in

Monaco, Rosberg made the trip to Rimac

HQ in Croatia to catch up with Mate and

to see the very latest developments within

the Rimac Group first-hand.

Production of the world’s first all-electric

hypercar GT is now underway at Rimac’s

new facility on the outskirts of Zagreb. The

first year of production is already sold out.

Almost every major component of the car

is designed, engineered, and built at Rimac

weeks or months prior to each car being

finished, and installed in the last phase of

production – the vehicle assembly which

takes about five weeks per car.

Showcasing the broad range of

customisation options available to

customers, car #000 – set to be retained

by Rimac – was finished in a bright Callisto

Green with Sand Alcantara interior. For car

#001, Nico has deliberately chosen a much

more aggressive specification described

when he first designed his car as the ‘full

Batmobile spec’.

With Stellar Black paint, polished Vertex

wheels and gloss black brake calipers, it’s

perhaps the most menacing personality

of Nevera possible. The interior is finished

in all black Alcantara, with subtle ‘Nico

Rosberg’ signature on the armrest

plate marking the car 001/150. The first

customer owned example of the Nevera

will be based in the Principality of Monaco,

Rosberg’s home, becoming the first allelectric

hypercar in the sovereign state.

Nico Rosberg has been a part of the Rimac

journey since he first saw the C_Two

concept – which would become Nevera –

September 2022 106


in person several years ago. He believed

in Mate’s vision for the Nevera as a truly

engaging and comfortable next-generation

hypercar, capable of crossing continents

and lapping racetracks, all on electric

power. He became one of the very first

customers. Rosberg said: “Ever since I

first met Mate and truly understood the

genius behind Nevera, I knew I wanted car

number one. For me, this car represents

absolutely everything I could ever want.

It showcases the very best of innovative

electrification technology, bringing it into a

car designed literally from the ground-up to

be not just incredibly fast – or the fastest –

but really great to drive, too. I can’t wait to

see what it can do.”

Following an 11-year career in Formula One

that saw him crowned World Champion in

2016, Nico has embarked on a career as a

sustainability entrepreneur and investor in

green technologies. He is invested in more

than twenty mobility start-ups as well as

Formula E, while his all-electric Extreme

E racing team - Rosberg X Racing are the

Championship winners of 2021 and are

leading the current season.

In 2019, he founded the Greentech Festival,

a global platform for sustainable innovation

and lifestyle. As of 2021, the event

has been hosted in New York, London,

Singapore as well as the city it was first

established in – Berlin.

Mate Rimac, CEO of the Rimac Group,

said, “When we first started designing

the Nevera we set out to build a car that

would impress even the best drivers in

the world. Nico was on that list, and it’s

a great feeling to know that someone

who has mastered the most focused and

cutting-edge motorsport in the world

gets such a thrill from the car that we’ve

created. We’re all looking forward to

following Nico’s journeys with the Nevera;

all of his cars are used and enjoyed, which

is exactly what we encourage our owners

to do. And if anyone can test the limits of

what we’ve built, it’s him. We’re proud

to call Nico a friend and the first member

of the rapidly expanding Rimac Nevera

owner family.”

With the first customer car delivered,

uniquely specified Neveras will now begin

appearing on the streets of countries all

over the world. Only 150 examples will

ever be built, sold and maintained by

Rimac Automobili’s global network of 25

dealer partners, stretching across North

America, Europe, Middle East, and Asia.

Even before this first customer delivery,

the Nevera has already received global

acclaim for its world-leading technologies

and unrivalled performance. With 1,914hp,

the Nevera is capable of accelerating from

0-60mph in 1.85 seconds, to 100mph in

4.3 seconds and can run the quarter mile

in a world-record 8.582 seconds. This

year alone, Nevera has been named GQ’s

Hypercar of the Year, Top Gear Magazine’s

Best Electric Performance Car and Robb

Report’s Best Hypercar.

September

2022

108


Tesla installing first charging station in Türkiye

Electric car maker Tesla has launched work

to install its first supercharger stations at

a motorway service and rest station in the

northwestern province of Bolu.

Equipment for charging stations have been

delivered to the site and chargers are

expected to become operational shortly.

According to Tesla’s website, supercharges

will be installed in several locations in

Türkiye, including Istanbul, Ankara, İzmir,

Aydın, Balıkesir, Bursa, Edirne, Antalya and

Konya.

Tesla plans to enter the Turkish market to

introduce its all models by the end of this

year.

If the sales maintain their current pace in

the coming months, electric vehicle sales

may reach around 4,500 units in Türkiye,

the Electric and Hybrid Vehicles Association

(TEHAD) said in a July report.

In the first six months of 2022, the number

of registered electric vehicles increased

by 170 percent from a year ago to 2,413,

according to TEHAD. Renault, BMW and

Mercedes-Benz dominated the electric car

sales in the local market in the first half

of this year. In June alone, electric vehicle

sales soared more than 82 percent to

499 units, but still accounted for only 0.8

percent of all car sales.

The prices of some electric vehicle models

in the country are expected to decline

following a new value-added tax (VAT)

regulation.

Parliament passed legislation regarding the

VAT levied on electric vehicles.

According to the new regulation, the VAT

rate on mid-segment electric vehicles,

including domestically developed TOGG’s

SUVs, will be around 10 percent. Presently,

there are around 3,500 electric vehicle

charging stations in the country. The

number of plugs to charge electric vehicles

is projected to increase to 30,000 in 2025

and to 160,000 by 2030.

September 2022 110


Turkish auto

industry seeks

new markets

to curb Europe

sales drop

Türkiye’s automotive industry, which makes

some 80% of its exports to Europe, is now

in search of alternative markets as sales to

the region begin to drop and are projected

to decrease even more.

The semiconductor crisis and the supply

problems have been continuing to

negatively impact the car industry. A loss

of 2.6 million units was seen in global

production in the first six months of the

year.

Meanwhile, the loss is expected to reach

3.5 million units towards the end of the

year.

The rise in raw material prices as well

as the record high inflation has been

worsening the impact of already existing

problems in the sector’s sales.

The global auto sales estimations for 2022

were reduced to 84.3 million units from

89.3 million units. The sales in Europe are

showing a particular downward trend as

the European consumer is postponing

demand for cars due to the rising inflation.

Türkiye’s automotive sales to major

markets, namely Germany, the United

Kingdom, France, Italy and Spain dropped

between 11% to 20%.

The sales estimations for the European

market, which was 14 million units before,

have revised to 12.2 million units.

Automotive Industry Association (OSD)

head Cengiz Eroldu, who said that it is

necessary to diversify export markets, said:

“While there was a 13% contraction in

demand in Europe in the first six months,

it was 15.4% in June. In addition, inflation

in Europe continues to increase. There is

also the uneasiness brought about by the

Russia-Ukraine war. Expectations of interest

rate hikes are among the issues that will

reduce demand.”

He said that there is a possibility that the

demand in Europe will go down even more.

“That’s why we need to go for new market

diversifications.”

Eroldu also touched upon the “Distance

Countries Strategy” program announced

by the Trade Ministry and said, “Critical

free trade agreements (FTA) should be

accelerated. Supportive policies should be

implemented to enter new markets.”

Eroldu added that the domestic market

can also be used effectively against the

contraction in exports.

The Trade Ministry announced that the

FTAs of Lebanon, Sudan and Qatar will

enter into force after the completion of the

internal approval processes. While Georgia

and Malaysia agreements are about to be

concluded, deals with Moldova and North

Macedonia are about to start. The ministry

is conducting FTA negotiations with more

than 17 countries.

Commenting on the first six-month results

of the auto industry, Eroldu said that the

rate of locality in total vehicles is at the

level of 45%.

“One of every two vehicles sold in Türkiye

is domestic production. This is something

that is not available in many countries in

Europe.”

The Turkish automotive industry had a

foreign trade surplus of approximately $9.5

billion in 2021. In the first six months of

2022, this figure stood at $4.5 billion (TL

80.27 billion). A foreign trade surplus of

around $9 billion-10 billion is expected at

the end of the year.

Türkiye’s car exports neared $4.6 billion in

the January-June period as the country sold

vehicles to 97 countries.

France, Türkiye’s second main market in

the automotive sector, topped the list of

countries in the country’s car exports.

In the first half of the year, exports to

France decreased by 30% to $659 million

compared to the same period last year.

The second country in Türkiye’s passenger

car exports was the United Kingdom.

In the January-June period of last year,

$395 million worth of passenger cars were

sold, while the figure reached $522.78

million in the same period this year.

Passenger car exports to Spain, which ranks

third, increased from $405.86 million to

$456.7 million.

Türkiye’s exports to France, the U.K. and

Spain accounted for 35.7% of the country’s

total passenger car exports in the January-

June period, while Italy and Germany

ranked fourth and fifth, respectively.

Meanwhile, automotive production in

Türkiye grew 1.5% year-over-year in the

first half of 2022, according to new data

released.

Automakers in Türkiye manufactured

649,311 vehicles in January-June, including

automobiles and commercial vehicles, read

a report by the Automotive Manufacturers

Association.

Some 72% of all vehicles manufactured

were exported, a 1.2% annual rise to

466,995 units.

Türkiye generated $15.5 billion from

vehicle exports in the six-month period, up

53% from a year ago.

The country’s overall auto sales market

shrank by 8.8% on an annual basis to

375,683 units in January-June, the report

said. Passenger car production fell 8% to

382,947 units in the same period.

In June, Türkiye’s automotive makers

manufactured 135,424 vehicles, a 26.3%

surge from a year ago. Top international

automakers – including Ford, Honda,

Hyundai, Mercedes, Renault and Toyota –

have factories in Türkiye, which is one of

the world’s top auto sales markets.

September 2022 112


Strategic

realignment in

the bus sector at

QUANTRON

In the course of the strategic realignment

as a manufacturer of own complete buses

as OEM, Quantron AG will no longer

distribute KARSAN products by the end

of the year. However, QUANTRON will

continue to provide technical support to its

customers for their KARSAN products in the

after-sales department.

Future outlook of business unit

QUANTRON Bus

The future QUANTRON complete buses,

including the all-electric QUANTRON

CIZARIS 12 EV low-floor bus, are

customized according to the strict

Quantron AG quality standards. In the

after-sales division, QUANTRON also

focuses on full customer support for

service and spare parts provided within

the company as part of the 360-degree

QaaS service offering, which also includes

customer advisory service for infrastructure

and solutions. Sales in the bus sector will

be expanded and further developed in the

international markets by Alexander Stucke

as Head of Sales Bus.

Quantron AG is a system provider of

sustainable battery-electric and hydrogenpowered

e-mobility for commercial

vehicles such as trucks, buses and vans.

The wide range of services is based

on the two business units Q-Retrofit

(electrification of used and existing

vehicles from diesel to zero-emission

electric drive) and Q-Mobility (OEM for

own zero-emission QUANTRON vehicles).

With the Quantron-as-a-Service Ecosystem

(QaaS), Quantron AG also offers an overall

concept for zero-emission mobility. This

includes the creation of individual overall

concepts including the tailormade charging

solutions, hydrogen refilling infrastructure

as well as rental, financing and leasing

offers and training courses and workshops

at the QUANTRON Academy. The e-mobility

pioneers also sell batteries and integrated

customized electrification concepts to

manufacturers of commercial vehicles,

machinery and intralogistics vehicles.

The German company from Augsburg

in Bavaria has a network of 700 service

partners and the extensive knowledge of

qualified experts in the fields of power

electronics and battery technology. As

a high-tech spinoff of the renowned

Haller KG, it combines over 140 years of

commercial vehicle experience with stateof-the-art

e-mobility know-how.

September 2022 114


25 out of 100 cars in

Turkey driven with

Koza products

Koza Otomotiv, which is planning to open its

new office in Hamburg, Germany next year,

aims to increase its export rate to 40% in the

next period.

Koza Otomotiv, entering the automotive market with the retail

sector, has, then, managed to become the sought-after and

preferred brand of the OEM channel. Bihter Hekim Usta, Strategic

Planning and Business Development Specialist of Koza Otomotiv and

Sales Manager Fikret Serez answered the questions we asked about

the future of the brand, currently serving the end consumer with 5

chain markets.

Firstly, can we briefly listen to your brand from you?

Koza Otomotiv was founded in 1993. Our adventure, started in

the retail sector, continued as a brand that started to produce its

own products as of 1997. A year later, we started to serve the OEM

(Original Equipment Manufacturer) channel. Our brand, which

later moved forward with the necessary certificates and quality

certificates, is among the leading manufacturers of the sector today.

September 2022 116


Our customer network and product range have grown and expanded over

the past 30 years. Koza Otomotiv products are being preferred by customers

in 25 out of every 100 cars sold in Turkey. Koza that is one of the top 3 players

in the sector has direct contact with the end user through its retail channels

with its own brands Auto Tyrex, Sees and Carmesse. Today, we are continuing

to work with the first 5 big chain markets in Turkey.

What are these products and their features?

The diversity in the production line in the beginning consisted of carpet and

mat products. Later on, we started to produce traffic kits, first aid kits, bags

and engine lower casings in-house. Now, we are producing 500 thousand

sets of carpet mats, 2 million first aid kits and traffic kits, and 100 thousand

sets of vehicle underbody protection equipment every year. In order to

increase quality and efficiency, especially in the production of carpet mats,

which is our main product, we have made a significant difference in customer

satisfaction with the automatic cutting machine that was incorporated in the

first half of 2021. Apart from this, we also turned to automation in our other

products and made the necessary investments. We are aiming to continue

providing product diversity in accordance with the standards of the OEM

channel, by observing the demands of end users and keeping our quality

standards.

Can you give us information about the brands you partner with and your

collaborations with these brands?

We can divide our main sales channels into three as OEM, chain stores and

fleet leasing. Firstly, if we talk about the OEM channel, Stellantis Group,

previous PSA, is our flagship in this channel, which includes Peugeot, OPEL,

Citroen, D’S brands. We are very excited to find special solutions for the

standard equipment and after-sales needs of this brand for nearly 25 years.

We are also proud to be the official supplier of brands such as Toyota, Suzuki,

Nissan, Hyundai, Subaru, Fiat, Skoda and Kia, having a significant market

share in Turkey.

In the chain markets channel, we are making strategic partnerships with

Turkey’s 5 big market chains, which I have just mentioned, with our own

brands and ‘private label’ products. Metro, Cash&Carry, Carrefour, Bauhaus,

Migros and Koçtaş, which are our customers in this channel, are playing an

important role in delivering our products to the final consumer.

In our fleet and car rental customer group, which is another important sales

channel, we are working with Avis&Budget, Derindere (drd), Sekar, MayGold

and Garanti Filo. Thanks to this customer group, we are offering our products

to our customers in transactions related to corporate and individual car

rentals.

Which countries and regions do you export to?

We are currently exporting to the European Union, Middle East and Gulf

countries (GULF). At the same time, we have a growth strategy targeting

especially England and Turkis Republics, all Asian countries.

As of today, 15 percent of our turnover is being realized through our export

sales and this rate is increasing day by day. We will continue to make

important moves in order to realize our export-oriented targets with our fair

participations.

Will you have new investments? How will these investments affect your

brand?

We are planning to open our Hamburg, Germany-based office, which we

see as one of the important steps in line with our brand vision, at the end

of next year. With this step, our goal is to add new customers to our existing

European Union customers. We would like to express that we attach great

importance to this investment in order to increase the share of export sales

in our turnover to the level of 35-40% within 3 years.

September

117 2022


What changes did the pandemic process

cause for your brand?

That the production shifted especially from

China to closer locations, having potential,

in the pandemic and post-pandemic period,

caused an increase in foreign demands for

our company. Likewise, the demands of the

end users changed in the domestic market

and that their interest in the purchase of

vehicles increased caused an increase in our

turnover and an expansion of our staff. As

Koza Otomotiv, we will continue to develop

ourselves and take a position in order to

be a solution partner for new customers in

the new economic order of which change

continues.

How do you evaluate the automotive

sector? What is the position of the sector

in the world? Where is Turkey in this

regard?

In recent years, we have witnessed some

crises that have deeply shaken the world

economy, such as the chip crisis and wars,

especially Covid. In the first months of

Covid, the manufacture fell to minuses

worldwide, then the return to life started

slowly due to masks and distance and

the demand for vehicles by the end user

reached incredible rates. But, this rate is far

from the coverage rates of raw material and

semi-raw material that OEMs demanded

from their suppliers at the beginning of

the year. Here, the most striking example

of products with supply chain problems is

the ‘chip’. Due to the lack of chips, there

were delays in the production and delivery

of cars. Due to the accident in the Suez

Canal, you can guess that the supply chain

was hit and the local supply chain strategy

has gained importance. As if these weren’t

enough, the Russia-Ukraine war had an

upward effect on the prices of petroleum

products, felt all over the world. We are

paying price for those crisis experienced

in every aspect of our lives as a result of

increase in inflation. Today, it has also

shown itself in new vehicle prices and

has also brought a serious increase in the

second-hand market. As Koza Otomotiv, we

feel great excitement about providing local

and foreign customers with a planned local

supply assurance and strategic partnership

by benefitting from the advantage of the

location. We look forward to meeting our

visitors at Hall:12.1 Stand:D37 at Frankfurt

Automechanika 2022.

September 2022 118


Truck crossing

problems on

Turkey-Bulgaria

border resolved

Issues causing long truck lines at the

Turkey-Bulgaria border have been resolved,

Bulgaria’s interior minister said.

“Truck traffic returned to normal thanks

to the intervention of the gendarmerie,”

caretaker Interior Minister Ivan Dermenciev

said after inspecting the Kapitan Andreevo

border gate, across from the Kapıkule gate

on the Turkish side.

Dermenciev noted that Bulgaria’s

provisional government, which took office

on Aug. 2, faced problems related to truck

queues at the border with Turkey.

Under former Bulgarian Prime Minister

Boyko Borissov, the Bulgarian government

had employed a private company to

conduct inspections at Kapitan Andreevo,

with the firm carrying out “food health

inspections” at the border for roughly 10

years.

Former Prime Minister Kiril Petkov, who

resigned in July, said no real inspections

were being conducted at the border

crossing and that the state had suffered

a loss of at least 500 million euros ($509

million) in 10 years.

Petkov terminated the work of the border

inspection company, but a court later

overturned the decision.

When state officials then began inspecting

the company’s work, long queues of trucks

formed as they waited to cross the border

for up to 26 hours.

September 2022 120


Ford to cut

thousands of

jobs in transition

to electric

U.S. carmaker Ford is preparing to cut

several thousand jobs to reduce costs and

intensify its transition to electric vehicles,

U.S. media reported.

The group is expected to announce the

elimination of more than 4,000 jobs,

according to The Wall Street Journal, which

cited people close to the matter.

Factory workers are not expected to be

affected, the report said.

Bloomberg said as many as 8,000 jobs

could be affected.

Contacted by Agence France-Presse (AFP),

a Ford spokesperson did not want to

comment on “speculation.”

But the group has scheduled a conference

call to give an update on its plan to

transform to electric vehicles.

“Key Ford executives will provide details

on how the company is building out

its industrial system to reach a global

production run rate of 600,000 EVs,

growing to more than 2 million EV annual

global run rate by 2026,” the company said

in a statement.

“As we’ve said lots of times, to deliver our

Ford+ transformation and lead an exciting

and disruptive new era of electric and

connected vehicles, we’re reshaping our

work and modernizing our organization

across all of the automotive business units

and the entire company,” the spokesperson

said in his message.

“We’ve laid out clear targets for our cost

structure so that we’re lean and fully

competitive with the best in the industry.”

Challenged by Tesla and other startups,

traditional carmakers have accelerated

the production of their electric models in

recent years. In March, Ford announced

the a new dedicated entity: Ford Model e.

At the time, it said it wanted to

manufacture 2 million electric vehicles

a year by 2026 – a third of its global

production – and planned to spend $50

billion on them. The company’s executives

also said they wanted to cut spending on

traditional vehicles to $3 billion a year.

September 2022 122


Digital

transformation

for EV gains

momentum

The number of devices that drivers must

charge or use batteries for is constantly

growing. This particularly goes for electric

vehicles (EV), not to mention other devices

such as smartphones, smart watches,

tablets, headsets, speakers and smart scales.

Be it for transport or entertainment, almost

every device we use now requires a battery,

sensor, processor and software. A similar

story of transformation is happening in

the energy sector. It is necessary to plan

correctly which vehicle will need how much

energy and where.

A digital transformation in the energy

industry is a must to correctly plan and

understand the ever-growing energy need.

There is a need for such investors who look

long-term in order to set up a smart energy

network.

In Turkey, the number of electric vehicle

charging units is estimated to reach 54,000

in 2023, before folding to 1.1 million by

2030 and 4.8 million by 2040.

The unprecedented surge in this figure is

mostly encouraged by incentives deployed

for fast-charging stations. Yet, digital

transformation is essential in the energy

sector to find a healthy and sustainable

clean source for the demand for fast

charging that will increase rapidly.

One out of every two vehicles sold around

the world are expected to be electric by

2030. The number of electric vehicles on the

road around the world will hit 125 million

by the end of this decade, according to

International Energy Agency (IEA) forecasts.

This volume increase indicates a 17.5%

share in sales and a 7.5% share in inventory.

The share of electric vehicles is seen

reaching 16% by 2024, a figure that is

estimated to hit 95% in the European car

market by 2035.

Indigenous all-electric car

Turkey is under the impression and excited

that it will soon see its first indigenous

electric vehicle on the roads. Yet, it

still has to pay close attention to actual

transformation in energy, as well as

autonomous driving.

Although the automobile itself is what many

see in Togg, it is the ecosystem that covers

mobility and technology that matters even

more, as frequently emphasized by the

executives of the consortium developing

Turkey’s domestically manufactured allelectric

car.

It is necessary to have technology initiatives

when it comes to the transformation of

energy, the analysis of consumer behavior

and autonomous driving. Therefore,

mobility-oriented technology initiatives are

seen grabbing more investment.

Schneider Electric Turkey General Manager

Ismail Yamangil says they are focused on

providing solutions with their partners to

ventures that obtain licenses and that are

required to meet conditions stated in the

by-laws published by the Energy Market

Regulatory Authority (EPDK).

“These solutions can be directly providing an

electric vehicle charger, as well as projects

such as planning and installing the energy

infrastructure of the relevant buildings or

facilities, increasing capacity if necessary, or

providing energy from renewable sources,”

said Yamangil.

Schneider Electric Turkey General Manager

Ismail Yamangil speaks during an event

in Istanbul, June 29, 2022. (Courtesy of

Schneider Electric)

The validity of the licenses issued by the

EPDK is 49 years, unless otherwise specified,

he noted.

“Therefore, the reliability and sustainability

of the system are important. The quality

of the products used for this, the system

infrastructure and the service network as a

whole, as well as the correct planning of the

facility from the moment of installation, are

very important.”

Revenue sharing

Yamangil says their main target with their

partners and shareholders is to back

sustainability in these fields.

“After the last regulation of the EPDK,

companies that received an electric vehicle

charging network license switched to a

model of pricing per unit of energy used

(per kWh). In addition, especially in recent

negotiations with public institutions and

organizations, we understand that they

want to prefer a revenue-sharing model,” he

noted.

“For instance, they envision a model where

the municipality, without incurring any

investment cost, shares the revenue per

charge with an investor who owns a license

and is free to set up a charging facility

anywhere. As can be seen, the subject of the

income model is still being shaped around

the priorities of regulations and investors. As

electric vehicles become more widespread,

we think that models will be formed that

will benefit both investors and consumers.”

Ever-growing energy need for housing

As with the Internet connection, the energy

needed in houses and apartments will

continue to increase.

Noting the importance of electric

transformer planning according to this

growing need, Yamangil emphasized that

charging stations are aimed at charging

as soon as possible within the limits and

protecting your vehicle, charger and

electrical installation from possible failures

through the protection systems inside them.

“For example, knowing the limits of the

existing electrical installation at a site,

growing charging needs of households can

be smartly managed within the limits of

the electrical installations. Thanks to this

system, in some applications, the need

for electric charging can be met without

otherwise making an additional investment

to boost power,” he noted.

“There are AC type 3.7 – 7.4 – 11- and

22-kW options for our detached home

users. Although the charging times of these

devices vary depending on the power

of your car and the charge capacity, the

average charging times for a car with a

40-kW battery can be seen,” Yamangil

explained.

He said they have products of the same

power and size for building estate users as

well.

“But the communication option is added to

these products. With the communication

option, five RFID cards are issued from each

device, and these cards can be increased to

3,000 for each device. Thus, a card can be

assigned to each apartment.”

17 million electric vehicles

Turkey’s first indigenous all-electric car

brand, Togg, is expected to add a significant

pace to the expansion of electric vehicles in

the country.

The number of electric vehicles in Turkey,

which stood at 34,000 in 2021, is expected

to reach 69,000 in 2023, 2.4 million in 2030

and about 17 million in 2040.

The share of electric vehicles in the total

number is projected to reach 0.3% in 2023,

before hitting 8% by 2030 and 38% in 2040.

For this increase to occur, the technology

initiative ecosystem needs to take a leading

role in the transformation.

September 2022 126

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