Automotive Exports October 2022

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Monthly automotive aftermarket magazine




İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Managing Editor (Responsible)

Mehmet Söztutan



Ali Erdem



Mehmet Soztutan, Editor-in-Chief


Advertising Managers

Adem Saçın

+90 505 577 36 42


Enes Karadayı


International Marketing Coordinator

Ayca Sarioglu



Yaren Kayıkçı


Yusuf Okçu


Finance Manager

Cuma Karaman


Digital Assets Manager

Emre Yener


Technical Manager

Tayfun Aydın


Design & Graphics

Sami aktaş



Yusuf Demirkazık



İsmail Özçelik



İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

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Paris rendezvous of the industry

The Turkish automotive industry has been able to consolidate and restructure its market

share both at home and abroad. With a cluster of car-makers and parts suppliers, the Turkish

automotive sector has become an integral part of the global network of production bases.

The exports by Turkish automotive sector, which is the major power of the economy,

reached remarkable figures in the last decade. The automotive industry has been active since

the early seventies. Initially, the majority of the market development was based on imports

and some level of local system integration. Since the full integration to the European Customs

Union in 1994, Türkiye has become a major production platform for global automotive

manufacturers and exporters.

Currently, there are major multinational vehicle manufacturers with their own production

facilities in Türkiye. While some of these companies are engaged in a joint venture with

Turkish companies, others are operating independently.

The Turkish automotive components industry reaches into many different sub-sectors of

activity. Turkish producers of parts and components have attained high standards reflected

by large export volumes to the Western countries. There are numerous producers of

automotive components and services in Türkiye. More than half of these manufacturers

compete in international markets and set high standards of export figures. Among them are

many small and medium manufacturers with advanced technologies, constant updates and

support from outside Türkiye, and a dynamic company structure. Many companies operating

in the Turkish market possesses international certifications, enhancing their global market


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.

We think that technology will always be the key for the survival of the automotive industry.

History says so.

This month, we are at Equip Auto-Paris 2022. We are convinced that the event would be

instrumental to increase business opportunities in the automotive industry.

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

share in the increasingly competitive foreign markets.

We wish all business people success and lucrative business.



Inside Tesla’s drive to keep

Musk’s battery promise

The secret behind Elon Musk’s goal of

selling 20 million Tesla’s a year by 2030 lies

in its pioneering battery technology.

The good news is that by using bigger cells

and a new process to dry-coat electrodes,

Tesla could halve the cost of a Model Y

battery, saving more than 8% of the car’s

U.S. starting price, battery experts with ties

to the company said.

The bad news is that it’s only halfway

there, according to 12 experts close to

Tesla or familiar with its new technology.

That’s because the dry-coating technique

used to produce the bigger cells in Tesla’s

4680 battery is so new and unproven that

the company is having trouble scaling up

manufacturing to the point where the

big cost savings kick in, the experts told


“They just aren’t ready for mass

production,” said one of the experts close

to Tesla.

Still, the gains Tesla has already made in

cutting battery production costs in the past

two years could help boost profits and

extend its lead over most electric vehicle

(EV) rivals.

Musk’s promised improvements in battery

cost and performance are seen by investors

as critical to Tesla’s quest to usher in an era

where it can sell a $25,000 EV for a profit

- and stand a better chance of hitting its

2030 targets.

Battery systems are the most expensive

single element in most EVs, so making

lower-cost, high-performance packs is key

to producing affordable electric cars that

can go toe to toe with combustion-engine

rivals on sticker prices.

Tesla is one of only a handful of major

automakers that produce their own EV

batteries and by manufacturing Model Y

cells at U.S. plants, the SUV will remain

eligible for U.S. tax credits when many rival

EVs may no longer qualify.

Among the 12 battery experts Reuters

spoke with, nine have close ties to Tesla

and three of the nine have examined Tesla’s

new and old battery technology inside and

out through teardowns.

Tesla did not respond to requests for

comment. The sources predict that Tesla

will find it difficult to fully implement the

new dry-coating manufacturing process

before the end of this year and perhaps not

until 2023.

October 2022 16

Stan Whittingham, a co-inventor of lithiumion

batteries and a 2019 Nobel laureate,

believes Tesla Chief Executive Elon Musk

has been overly optimistic about the

time frame for commercializing the new

technique. “I think he will solve it, but it

won’t be as quick as he likes. It’s going to

take some time to really test it,” he said.

In August, Musk told shareholders Tesla

would be producing high volumes of 4680

batteries by the end of 2022.

According to the experts, Tesla has only

been able to cut the Model Y’s battery

cost by between $2,000 and $3,000 so far,

about half the savings Tesla had planned

for the 4680 battery, which it unveiled two

years ago.

But those savings have come mainly from

the design of the new 4680 cells, which are

bigger than those in Tesla’s current 2170

battery, they said.

But the heart of the drive to push down

costs is the dry-coating technology, which

Musk has described as revolutionary but

difficult to execute.

According to the sources, it should deliver

as much as half of the $5,500 cost savings

Tesla hopes to achieve, by slashing

manufacturing costs and one-time capital


Tesla acquired the know-how in 2019

when it paid over $200 million for Maxwell

Technologies, a company in San Diego

making ultracapacitors, which store energy

for devices that need quick bursts of

electricity, such as camera flashes.

Building on Maxwell’s technology, Tesla

began making 4680 dry cells this year,

first in a pilot near its Fremont, California

plant and more recently at its new global

headquarters in Austin, Texas.

The technology allows Tesla to ditch the

older, more complex and costly wetcoating

process. It’s expensive because it

needs a substantial amount of electricity,

machinery, factory space, time, and a large

labor force.

To coat electrodes in the wet process,

battery producers mix the materials with

toxic binder solvents. Once coated, the

electrodes are dried in massive ovens,

with the toxic solvents that evaporate in

the process being recovered, treated and

recycled – all adding to the cost.

With the new technology, electrodes are

coated using different binders with little

use of liquids, so they don’t need to be

dried. That means it’s cheaper, faster and

also less environmentally damaging.

Because of its simplicity, the process allows

Tesla to cut capital spending by a third and

slash both the footprint of a factory and

its energy consumption to a 10th of what

would be needed for the wet process, Tesla

has said.

But the company has had trouble

commercializing the process, the sources


Maxwell developed its dry-coat process

for ultracapacitors, but the challenge with

coating electrodes for EV batteries is that

they are much larger and thicker, which

makes it hard to coat them with consistent

quality at mass-production speeds.

“They can produce in small volume, but

when they started big volume production,

Tesla ended up with many rejects, too

many,” one of the sources with ties to Tesla

told Reuters.

Production yields were so low that all the

anticipated cost savings from the new

process were lost, the source said.

If all the potential efficiencies from drycoating

and the bigger cells are realized,

the manufacturing cost for Model Y’s 4680

battery pack should fall to $5,000 to $5,500

– roughly half the cost of the 2170 pack,

according to the sources.

The rising cost of battery materials and

energy pose a risk to those forecasts,

however, and Tesla has not yet been able

to significantly improve the new battery’s

energy density or the amount of power it

packs, as Musk has promised.

Still, despite those factors, the savings Tesla

is expected to achieve will end up making

the 4680 battery the industry’s “best in

class” for the foreseeable future, one

source said.

Much of the $2,000 to $3,000 cost savings

achieved with the 4680 battery so far have

come from other improvements, and using

bigger cells has proven particularly potent,

the experts said.

The 4680 cells are 5.5 times the size of the

2170 cells by volume. The older cylindrical

cells measure 21 millimeters in diameter

and 70 millimeters in height, hence the

name. The 4680 cells have a 46 millimeters

diameter and are 80 millimeters high.

With the older technology, Tesla needs

about 4,400 cells to power the Model Y

and there are 17,600 points that need to

be welded – four per cell – to produce a

pack that can be integrated into the car, the

sources said.

The 4680 battery pack only needs 830 cells

and Tesla has changed the design so that

there are only two weld points per cell,

slashing the welding to 1,660 points and

leading to significant cost savings.

The simpler design also means there are

fewer connectors and other components,

which has allowed Tesla to save further on

labor costs and machine time.

Another source of efficiency has been the

larger cell’s far sturdier outer case. Tesla

can now bond the cells together with

adhesive into a rigid honeycomb-like pack

which is then connected directly to the

inner body structure of the Model Y.

This eliminates the intermediate step of

bundling cells into larger modules which

are then installed in a traditional battery

pack, the sources said.

By shifting to this “cell to vehicle” design,

Tesla can reduce the weight of a traditional

1,200-pound battery pack by 55 pounds

or more – saving about $500 to $600 per

pack, one of the sources said.

But mastering the dry-coating technique

remains the holy grail.

“Bulking up the battery cell helped a lot

in boosting efficiency, but pushing for

50% cost savings for the cell as a whole is

another matter,” one source said.

“That will depend on whether Tesla can

deploy the dry-coating process successfully

in a factory.”




Türkiye’s first


car flown to

Argentina for

winter tests

Türkiye’s first domestically produced car

has been transported to Argentina to

perform winter tests, just over a month

before its mass rollout is due to begin.

Togg was loaded onto a Turkish Cargo plane

at Istanbul Airport before it was flown to

Tierra del Fuego, the southernmost and

smallest Argentine province, to be tested

in extreme weather conditions, according

to a video shared by the Turkish Airlines


It marks the latest of Togg’s many roadsafety

performance and range/battery tests

that have been ongoing at accredited test

centers in different parts of the world.

Türkiye’s Automobile Joint Venture

Group, known as Togg, is the consortium

developing the car.

“We are celebrating the successful

performance shown at international tests

by the Togg smart device, one of the most

ambitious projects of Türkiye,” said Turkish

Airlines Chairperson of the Board Ahmet


“Doing our part as the national flag carrier

with the power of being the airline that

flies to more countries than any other in

the world, we are proud to deliver the

Turkish automobile and our country’s

technology exports worldwide,” Bolat said

in a statement.

Turkish Airlines had helped Togg make its

international debut as it flew the car to

Las Vegas for the Consumer Electronics

Show (CES), one of the world’s largest

technology and gadget fairs, in January.

The consortium showed off the “Transition

Concept Smart Device,” an all-electric

fastback concept car.

“From the first day we set out on our

journey, we have been acting on the

principle of choosing our business partners

among the best in our country and the

world,” said Gürcan Karakaş, CEO of Togg.

Following the “Transition Concept Smart

Device,” Karakaş said have now undertaken

yet another solid collaboration by

transporting the Togg Smart Device to the

accredited test center in Ushuaia, a resort

town in Argentina located on the Tierra del

Fuego archipelago and the closest point to

the South Pole.

“Our tests continue in various accredited

test centers, which are the world’s leading

ones. We stand by our word be it snow,

winter or mud, even on the other side of

the world if need be. We are taking firm

steps towards our goal to launch on the

promised date,” said Karakaş.

Togg is due to launch mass production

of its all-electric SUV. The SUV in the

C-segment will hit the market in the first

quarter of 2023 and will be the first electric

sport utility vehicle produced in continental

Europe by a nontraditional manufacturer.

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. The brand aims

to produce 1 million vehicles across five

different segments by 2030.

Togg said it would produce five different

models, namely SUV, sedan, C-hatchback,

B-SUV and B-MPV, through 2030. Mass

production of the SUV will be followed by

the sedan.

Construction of Togg’s engineering, design

and production facilities began in mid-

2020. Built on an area of 1.2 million square

meters (12.9 million square feet) in the

Gemlik district of northwestern Bursa

province, the facility is scheduled to be

completed soon.

Togg has opted for advanced lithium-ion

battery technology company Farasis as

its business partner for the battery. The

homegrown car can reach 80% charge in

under 30 minutes with fast charging. It will

have a range of between 300 kilometers to

500 kilometers (186 miles to 310 miles).

October 2022 20

Veoneer and emotion 3D recognized for

“Most Innovative In-Cabin Perception Application”

The AutoSens Award celebrates the best

and brightest working at the cutting-edge

of innovation in ADAS and autonomous

vehicle technology. At an event in Brussels,

Veoneer and emotion3D were honored with

the AutoSens Award in the category Most

Innovative In-Cabin Perception Application.

It is a fact that a car crash impacts people

in different ways as body factors play a role

in accident injury severity. In fact, a female

occupant is 73% more likely to suffer from

serious injuries than seatbelt-wearing male

occupants, according to the University

of Virginia. Only when the Restraint

Control System can distinguish between

the occupant’s individual characteristics,

optimal protection for everybody can be

achieved. The Smart-RCS uses a touchless

3D imaging sensor to derive precise realtime

information about each occupant:

situational factors like body position and

body crash dynamics as well as body

physique, age and sex so that the smart-RCS

computes the optimal airbag deployment

strategy tailored to each individual


“We are deeply honored for receiving the

AutoSens Award for our Smart-RCS - saving

lives when the unthinkable happens, says

Jacob Svanberg, CEO of Veoneer.

October 2022 22

Electrified, hybrid cars grab larger share in

Türkiye as total sales fall

Sales of electric vehicles (EVs) in Türkiye

nearly tripled from a year ago in the first

eight months, with their gasoline-electric

hybrid rivals also rising, industry data

shows, as fossil-fuel-powered cars lost

market share and total sales dropped.

Some 3,283 electric vehicles were sold

from January through August, according to

the data from the Automotive Distributors

Association (ODD), a 174.5% increase from

some 1,196 that were sold in the same

period a year ago.

Overall sales of passenger cars and light

commercial vehicles in Türkiye slipped 8.5%

year-over-year in the first eight months

to 458,446 units, the data showed, amid

soaring prices and as problems from

logistics bottlenecks to an ongoing chip

shortage curbed production.

Car sales were down 9.4% from a year ago

to 354,543 vehicles, while light commercial

vehicles dropped 5.2% to 103,903,

according to the ODD.

Cars powered by gasoline and diesel are

losing market but remain leaders.

Some 250,401 gasoline-powered vehicles

and 60,316 diesel cars have been sold in

the first eight months of the year. Both

were down from 256,815 and 80,643

units sold in the same period last year,


Hybrid vehicle sales maintained an upward

trend and jumped 2.9% to 34,265 units in

the January-August period, up from 33,287

sold a year ago.

Cars powered by gasoline and diesel

accounted for 87.6% of the overall sales in

the first eight months, down from 86.2% in

the same period of 2021.

Battery-powered and hybrid vehicles

boosted their market shares to 0.9% and

9.7%, up from 0.3% and 8.5%, respectively,

the data showed.

The share of electric and hybrid cars, which

are becoming widespread in the world,

remains at low levels, yet the growth in

sales shows a soaring interest of consumers

in the electrified market.

This interest is expected to gain major

momentum as Türkiye prepares to kickstart

the mass rollout of its first domestically

produced car. Türkiye’s Automobile Joint

Venture Group, known as Togg, is the

consortium developing the car.

Togg is due to launch mass production

of its all-electric SUV. The SUV in the

C-segment will hit the market in the

first quarter of 2023 and will be the first

electric sport utility vehicle produced in

continental Europe by a nontraditional

manufacturer. 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. The

brand aims to produce 1 million vehicles

across five different segments by 2030.

Togg said it would produce five different

models, namely an SUV, sedan,

C-hatchback, B-SUV and B-MPV, through

2030. Mass production of the SUV will be

followed by the sedan.

October 2022 24

Turkish minister

invites US


to invest in

Türkiye’s tech


Inviting the U.S. businesspeople to invest in

Türkiye’s technology start-ups, the Turkish

industry and technology minister said,

“Türkiye has the potential to be a regional

technology center for the U.S. companies.”

Speaking at Türkiye Investment Conference,

organized by the Turkish Foreign Economic

Relations Board’s (DEIK) Türkiye-U.S.

Business Council in New York, Mustafa

Varank said that the world is in a difficult

period due to the pandemic, wars,

inflation, energy crises, unstable supply,

and value chains.

He added that it is necessary to insist

on continuing public and commercial

diplomacy to solve the problems of the

global economy.

Stressing that Türkiye has proven that

it has a resilient, robust, agile, and

flexible economy with its performance

in the pandemic, Varank noted that,

unlike many other manufacturers,

Turkish manufacturers have successfully

fulfilled their domestic and international

commitments during the pandemic.

Emphasizing that many multinational

companies prefer Türkiye as a research,

design, production, export, and logistics

center at the intersection of Europe, Asia

and Africa, the minister said, “Some global

companies have already moved some of

their operations to Türkiye, while others

have increased their capacities.

“The number of international companies

doing business in Türkiye has reached

76,000, of which 2,000 are from the U.S..”

He said over 500 research and

development (R&D) and innovation centers

of international investors are located in


Recalling that the U.S. was Türkiye’s second

largest export market and fourth largest

import partner last year, Varank said that

the direct investment inflow from the U.S.

to Türkiye increased by 45% last year to

$14 billion (TL 257 billion), making the U.S.

second largest investor in Türkiye.

He said that the figures increased but far

below potential, adding that despite all

disagreements, Turkish President Recep

Tayyip Erdogan and U.S. President Joe

Biden always express their support for

improving the business environment.

“We believe that the new U.S. policy to

build resilient supply chains, stimulate

American manufacturing and foster broadbased

growth can provide opportunities

for both Turkish and American companies,”

he underlined. Türkiye attracts a large

number of investments from global actors

with its entrepreneurial business culture,

young and tech-savvy population, talented

engineers and competitive environment

and services, the minister noted.

He said the number of “unicorns” in the

country, which was zero in 2019, increased

to six currently, two of which were


The unicorn refers to start-ups whose value

exceeded the $1 billion level while it was

$10 billion for a decacorn.

Türkiye has the potential to be a regional

technology hub for U.S. companies, he


He said Türkiye’s start-up ecosystem

received a $1.6 billion investment last year

and $1.4 billion in the first half of this year.

Varank stated that in the same period,

Istanbul was the fourth most invested city

after London, Paris, and Berlin and ranked

first in Europe in game-related investments.

Calling on the U.S. firms to invest in Turkish

technology start-ups directly or through

venture capital funds, Varank said, “You

should invest in Türkiye and see the

benefits of doing business in our region by

opening up to the whole world from there.”

October 2022 26

Türkiye says $250B export target reachable

despite global headwinds

Türkiye is aiming for $250 billion (TL 4.55

trillion) in exports this year, Trade Minister

Mehmet Muş said , stressing that the

country maintains the goal despite signs

of a global slowdown and inflationary

pressures. Muş was speaking at the 4th

Türkiye Export Mobilization summit.

The event was organized by Türkiye’s

leading media group and Daily Sabah’s

parent company, Turkuvaz Media, in the

southeastern province of Gaziantep.

The minister separately wrote on Twitter

that exports in August hit an all-time

monthly high yet again, reaffirming the

views that the annual target would be

achieved even before the year-end.

Foreign sales jumped 13.1% year-overyear

last month to $21.3 billion, Muş

said. Imports rose at a much faster pace,

jumping 40.7% to $32.6 billion

Exporters have managed to achieve record

sales in each month so far this year and in

22 of the last 24 months.

The trade deficit surged by 162% to a

record $11.3 billion in August, data from

the Turkish Exporters Assembly (TIM)

showed. The shortfall in the first eight

months jumped by 146.4% to $73.4 billion,

mainly due to rising energy import costs.

Deteriorating global conditions,

exacerbated by the war in Ukraine, have

raised concerns for the rest of the year.

Russia’s invasion of its neighbor has

sent global commodity prices soaring,

endangering Türkiye’s economic program

that aims to tackle high inflation with a

current account surplus.

Exports had ended 2021 at $225.4 billion,

a figure that government and economists

expected to reach $250 billion this year.

Muş said that they want to diversify the

regions that Turkish businesses export to,

focusing on North and South America and

East Asia, not just Europe. More than half

of Türkiye’s export is destined for Europe,

he said, however, the uncertainty in the

region produces obstacles.

“Compared to the 2021 period, our exports

to this region increased by 17.2% in the

January-August period,” the minister said,

but this increase “is in a moderate trend

compared to months.”

“The uncertainty and slowdown in Europe

weaken demand. For example, while our

exports to the EU increased by 17.8% in

June compared to the previous year, the

increase was 5.2% in July and 2.7% in


“We are trying to diversify the market. We

want to focus not only on Europe but also

on North America, then on Latin America,

some countries in the Far East. This will

take some time, and expectations such as

the slowdown in the world, the uncertainty

in Europe and whether there will be a

power cut or not inevitably pull down


“The slowing demand there is pushing

down our exports here,” he said.

October 2022 28

Toyota to invest around

$5.3B in Japan, US for

EV battery production

Toyota will be investing 730

billion yen ($5.3 billion) in

Japan and the United States

to boost the production

of batteries for electric

vehicles (EV), the Japanese

automaker said.

Production is set to start

between 2024 and 2026 with

an investment intended to

augment battery production

capacity in both countries

by up to 40 gigawatt hours


The carmaker will invest about 400 billion yen in Toyota plants

and Prime Planet Energy & Solutions Co., a joint venture with

Panasonic Holdings Corp, plant in the western Japanese city of


In the U.S., about 325 billion yen will be invested in Toyota

Battery Manufacturing in North Carolina.

Automakers worldwide are spending billions of dollars to ramp

up battery and electric vehicle production in the face of tougher

environmental regulations. Toyota has scored success with the

Prius and other hybrid models, which have an engine as well

as a battery-driven electric motor, and so the company has at

times been seen as a laggard on electric vehicles. But the global

demand for electric vehicles is expected to grow in coming years

as gas prices rise and concerns grow about the environment.

Japanese rival Honda Motor Co. announced with major South

Korean battery maker LG that they were investing $4.4 billion

in a joint venture in the United States to produce batteries for

Honda electric vehicles in the North American market, with mass

production of advanced lithium-ion battery cells to start by the

end of 2025. Toyota reiterated its position that “there is more

than one option for achieving carbon neutrality,” highlighting

how its efforts with hybrids and fuel cells run on hydrogen can

also be solutions. The options may depend on where a customer

lives, according to the manufacturer, based in the city of Toyota

in central Japan.

“This investment is aimed at enabling Toyota to flexibly meet

the needs of its various customers in all countries and regions

by offering multiple powertrains and providing as many options

as possible,” it said in a statement. Other automakers, including

Ford Motor Co., General Motors, Hyundai-Kia, Stellantis and

VinFast have announced plans for U.S. battery plants. A new

U.S. law offers an incentive to build batteries in North America,

including a tax credit of up to $7,500 that could be used to defray

the cost of buying an electric vehicle. To qualify for the full credit,

the electric vehicle must contain a battery built in North America

with 40% of the metals mined or recycled on the continent.

Turkish exports hit all-time high for

8th consecutive month

Türkiye’s exports in August hit an all-time

monthly high yet again, Trade Minister

Mehmet Muş said, as the country

achieved its annual target even before the


Foreign sales jumped 13.1% year-overyear

last month to $21.3 billion, Muş told

a meeting in the southeastern province of

Gaziantep. Imports rose at a much faster

pace, jumping 40.7% to $32.6 billion, the

ministry data showed.

Exporters have managed to achieve

record sales in each of the last 12 months.

The trade deficit surged by nearly 162%

to a record $11.3 billion in August, the

data showed, as surging energy import

costs continue to widen the shortfall. The

deficit in the first eight months jumped by

146.4% to $73.4 billion.

Energy imports constituted some 27% of

the total imports last month, Muş said.

Deteriorating global conditions,

exacerbated by the war in Ukraine, have

raised concerns for the rest of the year.

Russia’s invasion of its neighbor has

sent global commodity prices soaring,

endangering Türkiye’s economic program

that aims to tackle high inflation with a

current account surplus.

Sales rose more than 18.3% year-overyear

from January through August to

$165.67 billion, while imports jumped

40.7% to $239.13 billion, the data


Exports had ended 2021 at $225.4 billion,

a figure that government and economists

expected to reach $250 billion this year.

The 12-month rolling exports topped $250

billion as of last month.

October 2022 34

Toyota profit

down in Q2 as

chips shortage

keeps customers


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


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


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


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


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.

October 2022 36

Togg CEO test drives prototype on Turkish highway

Türkiye’s Automobile Joint Venture Group

(Togg) CEO Mehmet Gürcan Karakaş was

captured on video during a test drive of

the company’s domestically made vehicle

on the North Marmara Highway at night,

Anadolu Agency (AA) reported.

The footage, obtained during the test drive,

showed Karakaş driving the prototype

vehicle, at a speed of about 100 kph (62.14


Seen as the country’s “second automobile

revolution” and revived by President

Recep Tayyip Erdoğan, Togg was officially

established on June 25, 2018. A former

executive at tech giant Bosch, Karakaş was

appointed Togg’s chief executive officer

on Sept. 1, 2018. Erdoğan, on Dec. 27,

2019, unveiled prototypes for a sport

utility vehicle (SUV) and a sedan, both fully

electric and C-segment models.

A consortium of five major companies,

Togg will produce five different models – an

SUV, sedan, C-hatchback, B-SUV and B-MPV

– through 2030.

October 2022 38

Eurotexso accelerates the

spare parts industry with

its 32 years of experience

Eurotexso, a company that emerged with

the blending of long-term feasibility,

planning and work with experience with

32 years of commercial history, has the

characteristics of a brand that both benefits

the country’s economy by investing and

plans to continuously contribute to the

sector with its development strategies.

After years of vigorous effort the company

claims, it has become known in the

international market for supplying quality

spare parts , has won the loyalty of its

customers, most of them being long-term

business partners. Explaining the future

goals of the brand to Automotive Exports

magazine, Eurotexso General Manager

Cevat Aydoğdu answered the questions

about the sector.

Can you tell us about the foundation

story of your brand? Which products

do you have in your product range?

Founded in 1987, Eurotexso is one of the

world’s largest and most comprehensive

suppliers of aftermarket spare parts for

power steering systems.

Can you tell us about your fields of

activity? How do you work differently

from your competitors to increase

customer satisfaction?

Besides offering high-quality items,

Eurotexso claims that it has been a brand

showing high regard for pre-and aftersales

services to customers. The company

supplies over 10 000 kinds of spare parts

for steering systems: power steering oil

seals, rack bar, bushings, bearings, sensors.

What do you aim in your industry for

the coming years?

In addition to constantly upgrading product

quality, we will expand the range of our

products with the aim of becoming an evermore-comprehensive

supplier of product

to customers all over the world.

How are you affected by the

increasing export activities in the

automotive sector? Does this

momentum gained in recent years

reflect on your exports? What are the

regions you export to?

Our products are marketed under the

brand EUROTEXSO and they are highly

popular globally especially in the Europe,

Africa and Latin America due to the

company’s long-help reputation for quality,

precision, prompt delivery, large product

range and competitive prices.

October 2022 40

GAYSAN, the leading manufacturer

of gas springs in the industry

Vedat Akdeniz, Vice General Manager

of Gaysan, one of the main suppliers of

the tractor and construction equipment

manufacturers for 40 years, talked about

the export targets of Gaysan to Automotive

Exports magazine.

Can you tell us about the foundation

story of your brand? What products

do you have in your product range?

Gaysan, established on 1980 with 20

people in Halic District of Istanbul,

improved its customer portfolio with its gas

spring production and become one of the

leader gas spring manufacturer in Turkey

and the world.

Gaysan manufactures and sells products

with over 40 years of gas spring production

experience customer focused with its

innovative quality solutions.

Can you tell us about your fields of


Gaysan manufactures gas springs for all

industries, especially automotive, buses,

heavy vehicles and tractors, Furniture,

medical, marine and industry business

with its innovative staff and R&D team

that closely follows the developing and

changing global technology. Gaysan,

which is an OEM supplier of leading

manufacturers, is a global company in its

sector that exports its products to more

than 70 countries.

How do you work differently from

your competitors to increase customer


Gaysan’s business understanding is to

present our products to its solution

partners with well-designed, high quality

and competitive prices. Our young and

innovative team meets the needs of

our customers all over the world, is a

strong indicator of our dynamism. With

our investments in technology and our

continuous quality improvement goals,

we ensure that our customers meet their

satisfaction at the highest level.

Beyond processing customer satisfaction

surveys, etc. as points, with the

understanding that customer satisfaction

is about delivering quality products on

time. We continue to increase customer

satisfaction by producing in accordance

with IATF 16949, ISO 9001, documents,

and by producing and shipping these

products in short periods of 3-4 weeks.

The compliance of the environmental

management system in accordance with

ISO 14001 standards is an indicator of our

success in creating an effective and efficient

environmental management. With our ISO

45001 certificate we already certify the

importance of the environmental health.

These are the elements that we consider

positive in terms of customer satisfaction.

Do you have different goals in your

industry for the coming years?

We are in close contact with the

new projects of the world’s leading

manufacturers for the automotive

industry, which we have been working

with for years. We are working to add

new companies to which we are approved


Gaysan Gazli Amortisor A.S. has developed

its product range in line with the needs of

the automotive and other sectors and will

continue to develop it in the future.

How are you affected by the

increasing export activities in the

automotive sector? Does this

momentum gained in recent years

reflect on your exports? What are the

regions you export to?

Carve an out niche in the Automotive

market with the IATF 16949 certificate we

held, Gaysan Gazli Amortisor A.S. provides

direct products to automotive production

lines in 8 countries, especially in Brazil and

Germany. As an aftermarket, it exports to

78 countries in the world.

Do you plan to invest in different

areas of the automotive industry?

We think everyone should do what they

know best. Based on this idea, we are

chasing how to make the gas springs better,

how to maintain our quality. As has been

the case for years, we prevent the market

problems with our work on gas springs

needs in different markets.

October 2022 42

Gov’t support

gives boost to

micro export

More and more small and medium-sized

enterprises (SMEs) and other businesses

are turning to e-export after the

government granted tax breaks of up to 50

percent to micro exporters last year.

E-commerce volume soared 69 percent

to reach 400 billion Turkish Liras in 2021,

while the number of orders placed through

those platforms increased by 46 percent

to 3.4 billion, according to data from the

Trade Ministry.

Some 92 percent of e-trade took place

within Türkiye, while the share of e-exports

in this ecosystem was 4 percent.

Most of the 500,000 companies, which

engaged in e-commerce activities, sold

their products in marketplaces, while

around 26,000 of them used their own


The Trade Ministry recently unveiled a

scheme dubbed “distant countries strategy,

which aims to boost Türkiye’s share in

global trade.

“Micro exporters can also benefit from

what the Trade Ministry offers to regular

exporters. The regulation introduced last

year, which offers tax breaks, will give a

boost to micro exporters’ businesses,” said

Mustafa Namoğlu, CEO of ikas.com.

Under the support mechanism, The

Trade Ministry help companies with their

marketing activities, opening offices and

stores abroad, he noted.

Micro export is the type of export that

covers shipments of up to 300 kilograms

and 15,000 euros in value, Namoğlu


Through the system called the Electronic

Trade Customs Declaration (ETCD), the

Trade Ministry developed facilitates for

small and medium-sized companies to

carry out their export activities, Namoğlu


“Under this system, SMEs do not need

to register with an exporters’ association

or file customs documents with customs

brokers. Those companies can keep their

products at the warehouses of authorized

ETCD firms at no additional

October 2022 46

Snow Lake Lithium and LG Energy Solution collaborate

to establish lithium supply chain in North America

Snow Lake Resources Ltd., d/b/a Snow Lake Lithium Ltd. (Nasdaq: LITM) (“Snow Lake Lithium”) has signed

a non-binding Memorandum of Understanding (MOU) with LG Energy Solution (LGES: KRX 373220) as a

next step towards building the domestic supply chain for the North American electric vehicle market.

Snow Lake Lithium and LGES will

collaborate to explore the opportunity

to create one of Canada’s first lithium

hydroxide processing plants in CentrePort,

Winnipeg, Manitoba. Under the terms

of the MOU, Snow Lake Lithium will

supply LGES with lithium over a 10-year

period once production starts in 2025.

The MOU and contemplated partnership

will be subject to a number of conditions,

including the completion of due diligence

from both parties.

A scoping study, in partnership with

Primero, is already underway to identify

the technologies, innovations and skills

required to deliver a world-class lithium

hydroxide plant within the Manitoba


Philip Gross, CEO Snow Lake Lithium said,

“We are delighted to collaborate with

world-leading LG Energy Solution to build

a rock to road battery supply chain for the

electric vehicle market in North America.

Both Snow Lake Lithium and LG Energy

Solution recognise the importance of local

sourcing of critical raw materials, such as

lithium, and that this is the logical step for

battery and electric vehicle manufacturers.”

“Our all-electric lithium mine in Snow Lake

Manitoba will power 5 million electric

vehicles over the next 10 years, helping to

secure the future of the North American

automobile market. We are grateful for

the commitment of Prime Minister Justin

Trudeau, Premier of Manitoba, Heather

Stefanson and Invest Canada to support

the development of a sustainable mining

industry in Canada which has helped to

facilitate our partnership with LG Energy

Solution,” added Gross.

Youngsoo Kwon, CEO of LG Energy Solution

said, “As we have recently announced

our mid- to long-term strategy to focus

on North America, the fastest growing

October 2022 48

EV market, these partnerships serve as a

crucial step towards securing a stable key

raw material supply chain in the region. By

constantly investing in upstream suppliers

and establishing strategic partnerships with

major suppliers of critical minerals, LGES

will continue to ensure the steady delivery

of our top-quality products, thereby further

advancing the global transition to EVs and

ultimately to a sustainable future.”

Snow Lake & Manitoba’s rich mining


Based in Manitoba, Canada, Snow Lake

Lithium is developing the world’s first allelectric

lithium mine to enable domestic

supply of this critical resource to the North

American electric vehicle industry. Snow

Lake Lithium is ideally located to serve

the North American automotive industry

with access to the US rail network via

the Artic Gateway railway, which reduces

transportation from thousands of miles by

road and boat to just several hundred by


The Manitoba region has a rich history of

mining giving Snow Lake Lithium access to

some of the most talented and experienced

miners in North America.

“At a time of global energy insecurity,

Manitoba is uniquely positioned to supply

the critical minerals and materials the

world needs to pursue decarbonisation,”

said Heather Stefanson, Premier of


“We are thrilled to see this partnership

move forward between Snow Lake Lithium

and LG Energy Solution to advance

Manitoba’s leadership position in the

North American electric vehicle supply

chain. This collaboration is a testament

to the execution of our government’s

strategy to attract investment, and the

new technologies that will help create a

stronger, growing economy for Manitoba

and Canada,” Stefanson stated.

Snow Lake Lithium’s 55,000-acre site is

expected to produce 160,000 tonnes of 6%

lithium spodumene a year over a 10-year

period, enough to power 5 million electric

vehicles. Currently, Snow Lake Lithium has

explored approximately 1% of its site and

is confident that further exploration will

increase estimates over the course of the

next year. Snow Lake Lithium’s planned

mine will be operated by almost 100%

renewable hydroelectric power to ensure

the most sustainable lithium manufacturing


Over the coming months, Snow Lake

Lithium will continue its engineering

evaluation and drilling programme across

its site, with the expectation that mining

operations, will transition to commercial

production targeted for 2025.

Canada – a global mining powerhouse

With its rich minerals and metals sector

ecosystem, Canada is globally recognised

as a world-leader in the mining industry.

Its commitment to producing minerals

in the right way, both protecting the

environment and ensuring local,

indigenous communities’ benefit, is

unparalleled. Canada is a natural location

for investment in critical minerals which

are essential to renewable energy, clean

technology and advanced manufacturing

supply chains. Canada is the only country

in the Western Hemisphere that has all the

critical minerals required for EV batteries,

including lithium. By 2025, Canada is

expected to rank third in the global

production of the raw materials needed for

electric vehicle batteries.




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 Turkey Export Mobilization


The event was organized by Türkiye’s

leading media group and Daily Sabah’s

parent company, Turkuvaz Media, in the

central province of Kayseri.

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.

October 2022 54

Öz-İş expands its export targets

Öz-İş company, which has a wide product

portfolio, has gained a very successful

momentum in the production of

automotive interior spare parts, especially

door panels. Mustafa Öz, General Manager

of Öz-İş brand, which has an ambitious

product range, talked about his company’s

future plans and export activities to

Automotive Exports magazine.

You have been in the automotive industry

since 1969. Can you tell us about the story

of your brand?

Our company was founded by İlhan Öz in

1969 as a family company. As the second

generation, we expanded the domestic and

international activities of the company.

Can you tell us about your fields of


Our product ranges are automotive

interior spare parts such as door panels,

dashboard, sunvisors, seat covers,

headliner, floor carpets, trunk carpets,

fabrics and upholstery products. Our main

activity area is automotive interior spare


How do you work differently from

your competitors to increase customer


Our customers voice is important for

us. We carefully listen their feedbacks

and take action on product research and


Do you have

different goals in

your industry in the

coming years?

Our goal is 100 percent

customer satisfaction

on before and after

sales. Our target is to

grow up 20 percent

every upcoming year

as financially and


How are you affected by the

increasing export activities in the

automotive sector? Does this

momentum gained in recent years

reflect on your exports? What are the

regions you export to?

More than 25 European countries and

United States are our main export markets.

Especially high raw materials costs, our

research and production team started to

work on it to make lower raw material

costs. Interior body components that

we are currently focused to improve our

product range.

October 2022 56

Turkish auto

production up

5% this


Türkiye’s automotive production this

January-July rose 5% compared to the

same period last year, according to a report

released by the country’s Automotive

Manufacturers Association (OSD).

A total of 742,969 vehicles in the first seven

months were manufactured, including

automobiles and commercial vehicles,

according to the new data.

During this period, the auto industry’s

capacity utilization rate was 66%.

Broken down by vehicle group, the capacity

utilization rates were 66% in light vehicles

(cars + light commercial vehicles), 84% in

the truck group, 33% in the bus-midibus

group, and 62% in tractors.

In January-July, total commercial vehicle

production reached 308,779 units.

The commercial vehicle market contracted

by 3% and the light commercial vehicle

market shrank by 5%, while the heavy

commercial vehicle market grew 8% this

January-July compared to the same period

last year.

Meanwhile, the total production of the

sector in July was 93,659, the OSD data


Thus, for the first time after January, the

total production of the sector reduced

below 100,000 units.

Although the automotive sector production

performed well in July compared to the

previous year, it fell behind the levels

recorded this year.

Automobile production remained at the

level of 51,243. Automobile production

also recorded the lowest performance

since January.

Compared to the previous year, the

total automotive production was 37.4%

automobile production increased by 41.5%.

In July, the total market increased by 11.2%

year-over-year to 55,324.

The exports of the sector increased by

16.2% annually to 59,596 units, while

automobile exports increased by 4% to

27,279 units.

October 2022 58

GM spending

$760M to

convert Toledo

factory to make

EV parts

General Motors says it will spend $760

million to renovate its transmission

factory in Toledo, Ohio, so it can build

drive lines for electric vehicles.

It’s the first GM engine or transmission

plant to begin the long transition from

internal combustion engines to electric

vehicles. The company has a goal of

making only electric passenger vehicles

by 2035. The move will keep the jobs of

about 1,500 hourly and salaried workers

at the Toledo plant, which now makes

four transmissions used in pickup trucks

and many other GM internal combustion

vehicles. No new hiring is expected.

Electric drive lines take power from the

batteries and convert it to motion at the


The 2.8 million-square-foot Toledo

plant, built in 1956, will make drive lines

for future electric trucks including the

Chevrolet Silverado and GMC Sierra

pickups, along with GMC Hummer EVs.

The announcement at the plant is good

news for the workers in Toledo, who have

worried about the future of their plant.

GM employs about 10,000 workers at

engine and transmission factories across

the U.S., and their futures are uncertain

as the switch to electric vehicles picks

up momentum. GM says the factory

will continue to make transmissions

for internal combustion vehicles, as it

gradually switches to electric drive lines.

Work on the renovation will start this

month, with EV component production

beginning early in 2024, Johnson said.

GM CEO Mary Barra has pledged to

unseat Tesla as the top seller of EVs by the

middle of this decad.

October 2022 60

Ford to slash 3,000 jobs to lower

costs as it pivots to EVs, software

Ford Motor Co. is cutting around 3,000

salaried and contract jobs as it attempts to

lower costs and make the transition from

internal combustion to electric vehicles.

Leaders of the Dearborn, Michigan,

automaker made the announcement in a

companywide email, saying that 2,000 fulltime

salaried workers would be let go along

with another 1,000 contract workers.

The cuts represent about 6% of the 31,000

full-time salaried workforce in the U.S.

and Canada. Ford’s 56,000 union factory

workers are not affected. Some workers

also will lose jobs in India.

Executive Chairperson Bill Ford and CEO

Jim Farley said in the email that Ford will

provide benefits and significant help for the

workers to find new jobs.

They wrote that Ford has a chance to lead

in the new era of connected and electric


“Building on this future requires changing

and reshaping virtually all aspects of the

way we have operated for more than

a century,” the email said. “It means

redeploying resources and addressing our

cost structure, which is uncompetitive

versus traditional and new companies.”

Farley and Ford wrote that they examined

each team’s shifting work to decide

where cuts would be made. The company

determined that its cost structure wasn’t

competitive with General Motors, Stellantis

and Tesla. It has said previously that it

has a target of cutting $3 billion in annual

internal combustion vehicle structural


“We are eliminating work, as well as

reorganizing and simplifying functions

throughout the business,” they wrote in

the email. A spokesperson said the cuts

were made across all areas of the company,

including cuts in the large work force of

internal combustion engineers.

The company already has restructured in

Europe, Asia and India.

Farley has said repeatedly that the

company has too many people and needs

to trim costs so it can move faster as it

transitions to electric vehicles.

On the company’s earnings conference

call in July, Farley said the company is too

complex its costs aren’t competitive. It also

has too many employees in some areas.

“We have skills that don’t work anymore,”

he said. “We have jobs that need to


Like other established automakers, Ford

has a workforce largely hired to support a

traditional combustion technology product

lineup. Going forward, Farley has mapped

out a strategy for Ford to develop a broad

lineup of electric vehicles. Like Tesla, Ford

wants to generate more revenue through

services that depend on digital software

and connectivity. Farley has said has too

many versions of its internal-combustion

vehicles. It plans to produce more models

off the same electric vehicle underpinnings,

spending capital on areas that affect

customers such as software, digital displays

and automated driving systems, Farley said.

Ford has realigned itself into three business

units, one for electric vehicles, another

for commercial vehicles and the last for

internal-combustion vehicles.

October 2022 62

Nissan commits

$17.6B spending

for electric cars

over 5 years

Japanese carmaker Nissan will spend

2 trillion yen ($17.59 billion) over the

next five years to accelerate vehicle

electrification, the company announced,

aiming to catch up with rivals in one of the

fastest growth areas for the automobile


This is the first time Japan’s No.3

automaker, one of the world’s first massmarket

electric vehicle (EV) makers with

its Leaf model more than a decade ago, is

unveiling a comprehensive electrification


Nissan will be spending twice as much as

it did in the previous 10 years for a share

of the EV market as rivals, including Toyota

and newer entrants such as Tesla, move

ahead with their electric-car plans.

Nissan said it will introduce 23 electrified

vehicles by 2030, including 15 electric

vehicles and wants to reduce lithium-ion

battery costs by 65% within eight years. It

also plans to introduce potentially gamechanging

all solid-state batteries by March


Those commitments, Chief Executive

Makoto Uchida said, would make EVs

affordable to more drivers.

“We will advance our effort to

democratize electrification,” he said in

an online presentation. Some analysts

were unimpressed with Nissan’s plan,

noting it was already behind rivals in the

electrification game.

Masayuki Otani, senior analyst at Securities

Japan Ltd, also said auto stocks were falling

because of market concerns about a new

coronavirus variant and the impact it could

have on production plans.

“Nissan’s long term vision comes at a time

when the market is perhaps not receptive

to it. It can be said that it represents a huge

increase in investment, it feels cautious,”

he said.

Shares of Nissan fell as much as 5.1% ,

underperforming its major rivals. They

were down 3.8% in afternoon trading.

Although still only a small portion of

vehicles on the road, global electric car

registrations in 2020 grew 41% even as the

overall car market contracted by almost a

sixth, according to the International Energy

Agency (IEA).

At the U.N. climate summit in Glasgow this

month, major carmakers, including General

Motors and Ford, signed a declaration that

committed them to phase out fossil fuel

vehicles by 2040. Nissan, however, has

not committed to abandoning gasoline

vehicles. It said half of its vehicles mix will

be electrified by 2030, including EVs and its

e-Power hybrids.

As it readies to compete for the growing

demand for EVs, Nissan in July pledged

$1.4 billion with its Chinese partner

Envision AESC to build a giant battery plant

in Britain that will power 100,000 vehicles

a year including a new crossover model.

Rivals, including Toyota, which also

declined to sign the Glasgow pledge, are

also ramping up their battery production.

The world’s biggest automaker by

production volume plans to have 15

battery electric vehicle (BEV) models

globally by 2025 and will spend $13.5

billion by 2030 to develop cheaper, more

powerful EV batteries and their supply


Toyota said it is aiming to introduce solidstate

batteries by the mid-2020s.

Those power packs are attractive to

automakers because they are more energy

dense and less prone to catching fire than

liquid lithium-ion power packs. They are,

however, prone to cracking and currently

are more expensive to produce.

Nissan said its goal is to bring the cost

of solid-state batteries down to $75 per

kilowatt-hour (kWh) in 2028 and further

cut it to $65 per kWh in the future to make

them competitive with gasoline vehicles.

October 2022 64


the automotive future

EQUIP AUTO PARIS powerfully asserts

its ambition and stance: to be the

international benchmark event within

the EMEA zone for aftersales and services

relating to connected mobility, by bringing

together the various players in the value

chain, extended to new market entrants.

For the first time, the two flagship events

of the automotive sector, the exhibition

EQUIP AUTO and the Paris Motor Show

(MONDIAL DE L’AUTO), one a tradeshow,

the other a consumer event, come

together under the same banner by

initiating Paris Automotive Week, to be

held at Porte de Versailles from 17 to 23

October 2022. The week of the automobile

will revolve around a series of events,

inspiring speaking opportunities and test

drives. It will be a world premiere that

brings together professionals and the

general public, providing the automotive

industry with the opportunity to share its

vision for the future of automobiles and

mobility with the French public, journalists

and visitors from all over the world.

EQUIP AUTO is a venue for information,

sharing and listening. The show federates

the automotive aftersales world in a

convivial, enthusiastic and businessfriendlyatmosphere.

It is an essential

performance lever.

Major challenges for EQUIP AUTO

2022: CO2 reduction targets, planned

conversion from ICE to electric energy and

green transition. Electrification, vehicle

connectivity, autonomy, industry 4.0,

control over data, etc

Special features for 2022 are:

1. Circular economy: sustainable

automotive (depollution, recycling, used

parts and remanufacturing, eco-friendly

garage, used vehicles) 2. Technological

October 2022 68

innovations: The garage of the future

(Electronic maintenance, connected

garage, mechanics and bodywork)

3. Energy transition & Maintenance:

Aftersales tomorrow (New powertrains:

from OE to AM, retrofit, ethanol and

synthetic fuels) 4. Training, Recruitment

and Business Transmission Talks and special

features will be happening throughout

the 5 days of the show: 4 major European

forums, theme-based talks and workshops,

a demonstrator, the International Grands

Prix for Automotive Innovation, and a gala

evening. For 30 years, EQUIP AUTO has

placed innovation at the centre of its

priorities. Acknowledged as a prestigious

accolade in many countries, these awards

reflect an international dynamic around

the know-how, skills and innovations of

firms. Awarded by a panel of more than

60 French and international journalists

from 14 countries, the competition is

open to all exhibitors. Special features

for 2022 A common thread and 4

major themes to assert the vocation

of EQUIP AUTO, as the tradeshow for

the downstream automotive sector A

common thread and 4 major themes

to assert the vocation of EQUIP AUTO,

as the tradeshow for the downstream

automotive sector The International

Grands Prix for Automotive Innovation.

EQUIP AUTO is widening its themes and

potential to consolidate its vocation as

an industry vertical tradeshow, with all

the equipment, products and services for

downstream market players (IAM, OES)

with the technological innovations of the





Devran 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


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


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

October 2022 72

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.


73 2022

Standard Motor Products continues

growth of Ignition Coil Program

Standard Motor Products, Inc. (SMP)

continues to add to its aftermarket-leading

Ignition Coil program, which includes more

than 800 Coils providing 99% coverage for

import and domestic vehicles. Each Coil

is designed to deliver improved durability

and a longer service life. When the OE

fails, technicians trust Standard® and Blue

Streak® to deliver a Coil that will last.

Standard’s Ignition Coil Program features

a variety of coil types to fit many

applications, including Coil on Plug,

Electronic, Pencil, Cassette, Import,

Blue Streak® Heavier-Duty, and Blue

Streak® Direct Ignition Coil Kits. The

Coils are expertly designed, engineered,

and manufactured at SMP’s IATF

16949-certified Poland facility. Each one

then undergoes rigorous examination and

product validation, including extensive

measurement and life testing, a full range

of environmental analysis that includes

thermal shocks, thermal cycling, and

vibration tests to ensure 100% product


New Standard® and Standard® Import

Coil on Plug units are now available for

many popular vehicles, including the

2021-20 Hyundai Sonata, 2021-20 Ford

Escape, 2022-20 Subaru Outback, 2022-

21 Chevrolet Trailblazer, and 2021-19

Porsche Cayenne. Electronic Ignition

Coils have been added for many General

Motors vehicles through the 2021 modelyear,

including the Cadillac CT4, CT6,

and XT4. New applications also include

the 2021-20 GMC Sierra and 2020-19

Chevrolet Silverado.

Additionally, Blue Streak® Direct Ignition

Coil Kits have been introduced for a

wide array gasoline and hybrid vehicles.

These Kits include a full set of heavierduty

units providing technicians exactly

what they need for a complete coil

service. Blue Streak® Heavier-Duty Coils

are engineered to address OE flaws,

with improvements and upgrades

that continue to elevate Blue Streak®

products above the competition. Over

5.7 million Toyota and Lexus vehicles and

nearly 8 million Ford vehicles will benefit

from the introduction, as well as other

popular applications including the 2017-

09 Volkswagen Tiguan and 2018-15 Audi

Q3. In addition, Standard® is committed

to offering Coils for the growing hybrid

market. Recent releases demonstrate

this commitment, adding coverage for

hybrid vehicles like the 2012-2010 Lexus


October 2022 74

Lamborghini has already sold all its cars until 2024

Italian sports car maker Lamborghini has

already pre-sold the entire production run

to early 2024, its boss has said, with luxury

goods seemingly unaffected by global

economic uncertainty. Wealthy customers

are flocking to the brand despite the global

financial fallout from Russia’s invasion of


“We have more and more stepping into

Lamborghini. Because they trust the brand,

they see how beautiful the cars are, how

(high) performing they are,” Winkelmann

said. The global economy only has to “stay

a bit stable” for that to continue, he added.

The long order times are also the result

of a shortage of components, particularly

chips needed for new electric models.

Lamborghini is planning a hybrid version

of each of its models by 2024 and the first

fully electric Lamborghini in the second

half of the decade.

Lamborghini in early August reported the

best half-year in its history with record

sales and profits. The carmaker’s operating

margin reached 32 percent, while

operating profit jumped to 425 million

euros on 5,090 cars sold.

Fellow luxury carmaker Ferrari also posted

record results in the second quarter and

raised its annual forecast, with orders at

record levels.

In late July, the world’s top luxury

consumer goods group LVMH also reported

a jump in sales and profits in the first half

of the year despite the uncertain economic


October 2022 76

Turkish Central

Bank takes

steps for credit


financial stability

The Central Bank of the Republic of Türkiye

(CBRT) announced new macroprudential

measures to address loan growth and the

interest rates applied in commercial loans,

facilitating the real sector’s availability of

loans. The move aims to support financial

stability and strengthen the monetary

transmission mechanism, the bank said in a

statement, citing the recent increase in the

spread between its policy rate and the loan

interest rate. Accordingly, the lenders will

have to maintain treasury bonds depending

on the coefficient on the interest rates in

the commercial loans they will give.

“The reserve requirement maintenance

being applied at a ratio of 20% will be

replaced by maintenance of securities at

30% for banks to enhance the efficiency of

the practice,” it said.

“For commercial loans, 20% of the loan

amount to be extended at an annual

compound interest rate 1.4 times higher

than the CBRT-released annual compound

reference rate,” read the statement.

If the loan interest rate is 1.8 times or more

than the reference rate, the facility rate

will be applied as 90%, it said. The bank

unexpectedly lowered its interest rate by

100 basis points to 13% from 14%.

The CBRT delivered a series of cuts last

year, slashing rates by 5 percentage points

before pausing the easing cycle in January.

In a statement accompanying the latest

decision, the bank said the cut was aimed

at driving economic growth and sustaining

employment amid growing geopolitical risk.

It added that rising loan rates have

diminished the effectiveness of the

monetary policy. Head of the Ankara

Chamber of Commerce (ATO) Gürsel Baran

said that with the measures taken by the

central bank following the interest rate cut,

the commercial loan interest rates were

limited to not exceed 30%.

“The decisions taken by our central bank

and the measures it has published are

indications that the voice of the real

sector is heard,” he said, noting that these

measures are welcomed by ATO members.

He pointed out that the interest rates

applied to commercial loans exceeding 45%

and the inability to access credits limited

the mobility of the real sector.

“In this period when the global economy

is dealing with many risks, new investment

and production opportunities are emerging

for our real sector,” Baran went on to

say, noting that the business world needs

support in order to make use of these


“With these measures, commercial interest

rates are aligned with the policy rate of the

central bank,” he said, and thus, the policy

envisaging rise in investment, production,

employment and exports is supported.

October 2022 80

Turkish economy grew 7.6

percent in second quarter

The GDP growth accelerated from 7.3

percent in the first quarter of 2022 to 7.6

percent in the April-June period, data from

the Turkish Statistical Institute (TÜİK) have


On a seasonally and calendar adjusted

basis, the economy grew 2.1 percent in the

second quarter from January-March, up

from the quarterly growth of 0.7 percent

recorded in the previous quarter.

“We did not only achieve a robust growth

performance in the second quarter growth

but also the balanced growth continued

for the fifth quarter in a row,” said Treasury

and Finance Minister Nureddin Nebati,

hailing the latest GDP data.

He noted that the 7.6 percent is the

second highest among all OECD and G-20

economies which released their second

quarter data.

“The gains made based on the Türkiye

Economic Model, which prioritizes growth

and employment and supports production

and exports will continue for the remainder

of the year. The trademark of our economy

is now sustainable and employmentfocused

growth,” Nebati wrote on Twitter.

The strong annual growth in machinery and

equipment investments over the past two

and a half years continued in the second

quarter, rising 17.8 percent, the minister

stressed. “We welcome this as it means the

expansion of our production capacity,” he


According to data from TÜİK, the industry

sector grew by 7.8 percent year-on-year,

easing from the 8.2 percent growth in the

first quarter with manufacturing output

growing 9.1 percent, up from 8 percent.

The services sector, which grew 15.4

percent in the first quarter, expanded 18.1

percent in April-June, while real estate

activities rose 4.1 percent in the second

quarter, accelerating from the 3.8 percent

expansion in January-March.

The contraction in agriculture deepened

in the second quarter with the decline in

the sector’s output quickening from 1.5

percent in the first quarter to 2.9 percent in

the second quarter. The construction sector

also contracted by 10.9 percent year-onyear,

which came on top of the 7.7 percent

drop in the industry’s output in the first


The financial and insurance sector grew by

26.6 percent after expanding 25.7 percent.

Households’ final consumption increased

by 22.5 percent in the second quarter,

gathering pace from the 21.5 percent rise

in the first quarter. The share of household

consumption in the GDP, however, declined

from 58.5 percent in the first quarter to

57.4 percent.

Government final expenditures, which rose

by 3.1 percent year-on-year in the January-

March period, grew by 2.3 percent in the

second quarter.

The growth in gross fixed capital formation

accelerated from 4.2 percent to 4.7


The country’s export of goods and services

increased by 16.4 percent, up from 14.8

percent in the first quarter, while imports,

which were up 2.2 percent, rose by 5.8

percent, TÜİK said.

At current prices, The GDP reached 3.4

trillion Turkish Liras or $219 billion in the

second quarter of 2022.

The share of compensation of employees in

gross value added fell from 31.2 percent in

the second quarter to 25.4 percent, while

the share of net operating surplus/mixed

income increased from 47.6 percent to 54


October 2022 82






Everrati Advanced Technologies (“EAT”)

draws upon Everrati’s unique combination

of engineering experience; amassed

from more than 50 years of collective

expertise working within automotive

OEMs. Utilising proven Everrati automotive

EV propulsion system platforms as a

starting point, EAT provides consultation

on a suite of electrification solutions for

commercial clients, from initial concept,

analysis services and feasibility study to

complete turnkey EV powertrain provision.

In addition, EAT will provide software and

IP development for bespoke customer


Initially focused on the low-volume

specialist and luxury vehicle sector, EAT will

provide design, development, engineering,

and production consultancy services,

enabling customers to create almost any

bespoke EV powertrain solution they

desire. Whether a redefined version of an

existing vehicle or an entirely new electric

propulsion system application.

Over the last three years, Everrati has

developed sector-leading technology,

designing, and developing a range of

class-leading EV platforms for its portfolio

of redefined automotive icons. This highly

flexible propulsion system enables the

powertrain to be mounted in the front,

middle or rear of the vehicle, with drive

sent to any combination of wheels.

Everrati’s OEM-derived product delivery

process and approach to development and

testing can be applied to almost any type of

vehicle, it allows EAT’s customers to create

almost any configuration of luxury EV and

accelerate delivery times

EAT applies Everrati’s own industrystandard

and proven product delivery

model to seamlessly match customer

requirements and delivery processes.

Experience in delivery to multiple global

territories allows EAT to work with

customers to ensure their product complies

with local market regulatory & legislative

standards. EAT also expects to achieve ISO

9001 and ISO 14001 accreditation in 2023.

Sector-leading technology and quality

expertise is further backed up by Everrati’s

October 2022 84

proven integration and applications

experience of DC fast charging, battery

design and packaging, functional safety,

vehicle systems integration and user

interface development.

Finally, the company has developed

strategic partnerships with leading Tier

1 suppliers, across battery, inverter and

e-motor technologies, with EAT bringing

together the very best in EV components,

alongside Everrati’s own innovations, under

one roof.

The division will support increasing

demand for consultancy services and

electrification solutions from other luxury

sectors including marine and aerospace.

Everrati’s flagship model, the upcoming

GT40, represents the pinnacle of redefined

performance EV icons. Featuring 800bhp

Helix e-motors, a 700-volt architecture,

plus high power density batteries and

class leading discharge rates with 150kW

charging capability; the GT40 brings OEM

levels of technology and performance to

the sector that EAT customers will now be

able to draw on for their own projects.

Everrati also announces further

strengthening of its senior team with

Ian Fenton joining as a member of the

Advisory Board to develop its international

footprint. Bringing 30 years of international

experience in the motor industry, Ian has

held senior/c-suite roles in Ford of Europe,

Ford Motor China, Mazda JV, Jaguar Land

Rover, Aston Martin Lagonda Plc and Aston

Martin Works Ltd.

Everrati Founder and CEO, Justin Lunny,

said: “We are delighted to launch Everrati

Advanced Technologies – a new division of

Everrati dedicated to specialist and luxury

low volume electric vehicle design and

manufacture for third party customers.

“Everrati’s reputation is built on our

own OEM-grade proprietary EV platform

technology combined with the skills

of our team – many of whom have

held senior engineering positions at

leading automotive brands. This unique

combination has quickly driven global

demand for our products, which set new

standards in the sector. We are now

delighted to offer the same levels of

expertise to specialist and luxury vehicle

brands to support our commercial clients’

electric ambitions.

“These customers range from start-ups to

established brands, and all share similar

needs: the very latest in cutting-edge,

OEM-grade, flexible electrification solutions

that will enable them to go zero-emission

without delay. It is critical that every brand

moves to EVs to meet incoming emissions

rules globally. With the support of Everrati’s

engineering and development skills, allied

to our proprietary EV platform technology

and strategic partnerships with leading

Tier 1 component manufacturers, Everrati

Advanced Technologies will provide

specialist and luxury vehicle customers

with any level of electrification support,

from concept to complete turnkey vehicle


“I am also honoured to welcome Ian

Fenton to our senior team. Ian’s highly

relevant and deep experience, gleaned

from many director positions with leading

OEMs, will be invaluable to both Everrati

and Everrati Advanced Technologies,

further strengthening our offering to all


With multiple projects already in place with

start-ups and established luxury brands,

Everrati Advanced Technologies has already

begun development work on a number of

customer electrification projects, details

of which will be announced in the coming






should not

worry about


Businesses in Türkiye should not be

concerned by the threat of sanctions,

Treasury and Finance Minister Nureddin

Nebati said on Aug. 26.

“The letter should not cause concern in

our business circles. Türkiye is one of the

most important political and economic

power centers in the world,” Nebati wrote

on Twitter, referring to the letter the U.S.

Treasury issued to warn against violating

the sanctions imposed on Russia.

It is important for Türkiye to cooperate and

work together with its allies against the

global and regional challenges, he added.

“We are also determined to develop

commercial relations with our neighbors

in various sectors – especially tourism –

within a framework that is not subject to

sanctions... We are pleased to see that the

United States, our ally and trade partner,

is inviting its businesses to invest in our

economy,” Nebati said.

All actors in the Turkish economy are

committed to principles of free market and

try to have a larger share in global trade,

the minister said.

The Turkish Industry and Business

Association (TÜSİAD), on Aug. 23,

confirmed that it received a letter from U.S.

Treasury Deputy Secretary Wally Adeyemo

cautioning that Turkish companies risked

consequences if they did business with

Russians or Russian institutions that were

under U.S. sanctions.

Türkiye will not allow any person or

institution to violate sanctions imposed

on Russia over the invasion of Ukraine,

a senior Turkish official told his United

States counterpart. Deputy Treasury and

Finance Minister Yunus Elitaş spoke on the

phone with U.S. Deputy Treasury Secretary

Wally Adeyemo on the implementation of

sanctions against Russia. Elitaş underlined

the fact that Türkiye has deep economic

and political ties with both Ukraine and

Russia, saying Ankara’s stance on the

sanctions has not changed, meaning it

won’t join unilateral sanctions. But he

also assured his counterpart that the

government would not allow any person or

institution to violate sanctions on Russia.

Türkiye to launch new buses powered

by indigenous charging system

Anew domestically developed electric bus

is due to hit the roads in Türkiye’s Samsun

province, the latest in the efforts to curb

carbon emissions and achieve savings.

Manufactured jointly by prominent

electronics company Aselsan and TEMSAN,

an electromechanical firm affiliated with

the Energy and Natural Resources Ministry,

the vehicles will transport their first

passengers during a major upcoming event

in the northern city. Charged in as little as

15 minutes, the buses will run on lithium

batteries with Türkiye’s first domestic ultracharging

system. They will be responsible

for the transportation of visitors on the

sidelines of Teknofest, Türkiye’s largest

aerospace and technology event, set to be

held in Samsun from Aug. 30 through Sept.

4. The Black Sea province is known for its

congested traffic. Samsun Municipality

Mayor Mustafa Demir says the city is

among provinces where public transport

proves to be crucial.

“Although we built the rail system,

we could not provide the necessary

comfort in the city, especially in public

transportation. The rail system currently

operates on a single line. So our trams

are running at full capacity. We cannot

increase the number of trams,” Demir


“We are thus putting forth electric buses

in accordance with the transportation

master plan we prepared.”

“For the first time in Turkey, electric

buses that run on lithium batteries with

a domestic ultra-charging system will be

used in Samsun. The test drives have been

completed, and we are commissioning

them together with Teknofest,” the mayor


The vehicle can travel 80 kilometers (50

miles) with a 15-minute charge.

“We could have had it going 300-400

kilometers by changing the battery

system, but when we made a cost

calculation, we decided that these buses

are the most optimal,” said Demir.

October 2022 88

Turkish auto industry seeks new

markets to curb Europe sales drop

Turkey’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


Meanwhile, the loss is expected to reach

3.5 million units towards the end of the


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.

Turkey’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


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 Turkey

is domestic production. This is something

that is not available in many countries in


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.

Turkey’s car exports neared $4.6 billion in

the January-June period as the country sold

vehicles to 97 countries.

France, Turkey’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 Turkey’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.

Turkey’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

Turkey grew 1.5% year-over-year in the

first half of 2022, according to new data


Automakers in Turkey manufactured

649,311 vehicles in January-June, including

automobiles and commercial vehicles, read

a report by the Automotive Manufacturers


Some 72% of all vehicles manufactured

were exported, a 1.2% annual rise to

466,995 units.

Turkey 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


Passenger car production fell 8% to

382,947 units in the same period.

In June, Turkey’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 Turkey,

which is one of the world’s top auto sales


October 2022 90

The PI Group and Averna

announce their partnership

This alliance shall develop innovative

automation solutions for high-quality

product manufacturing.

Physik Instrumente (PI), an international

group of companies focusing on highprecision

motion and positioning

solutions, and Averna, the leading

global test & quality solutions provider,

announced today that they have formed

a new partnership. By combining the

competencies of both companies

advanced automation solutions can be

delivered to meet the growing need for

flexible, scalable, and high-throughput

manufacturing and test equipment.

“We are very excited to begin this

partnership,” explains Niels Davidts, Vice

President of Europe at Averna. “Having

worked with PI products in the past, we

understand the power of what they offer.

They are unique in what they do, and we

know how to make them work best for our

clients. A closer partnership will open a lot

of opportunities for both parties.”

Scott Jordan, long-standing photonics

expert and business developer at PI

emphasizes: “Working with Averna has

been very rewarding. We have always been

impressed with the systems they design

for test, quality, and precision assembly.

Combined our knowledge with Averna’s

skills, we can now approach customer

challenges in ways that have never been

done before.”

With significant overlap in several

markets including industrial automation,

automotive, consumer electronics,

communications, and life sciences, PI and

Averna offer each other extensive expertise

in different areas of focus. Their goal is to

expand each offering to their clients by

integrating PI’s unique precision positioning

and micro-robotics systems into Averna’s

customized quality and assembly turnkey

solutions. To date, they have delivered

numerous joint projects, improving results

for a variety of applications including

camera & projector assembly, laser

alignment, fiber alignment and optical

wafer scanning.

With over 70+ years of combined

experience, almost 2000 specialists and

multiple offices located worldwide, PI and

Averna are available to support their clients

through multiple disciplines and time


October 2022 92

Maserati unveils

its electric


Folgore sports car

Maserati has unveiled the GranTurismo

Folgore, one of three versions of the

maker’s new all-wheel drive four-seater

introduced for 2023. At the same event,

Maserati also introduced the Modena (490

horsepower on a 3.0 liter V6 Nettuno twin

turbo) and the high-performance Trofeo

variant with the same engine boosted up

to 550 horsepower. A Maserati executive

described the electric GT as “the same

body wearing a different suit” to illustrate

the relationship between the new models.

Earlier this year, Stellantis-owned Maserati

announced its first EV, the Grecale

Folgore. While the Grecale Folgore isn’t

expected until 2023, Maserati is wasting

no time filling out its EV roster with the

introduction of GranTurismo Folgore, the

next electrified model to join the Folgore

electric lineup.

The Folgore GT (which is Italian for

“lightning”) will electrify the revived

GranTurismo line with an 800-volt batteryelectric

system. The 92.5 kWh battery

powers a three-motor setup that sends a

combined 760 horsepower to the wheels.

The battery pack resides in a T-bone shape

along the bottom of the vehicle, unlike the

familiar skateboard layout seen in other

EVs. This gives the all-wheel drive car a low

center of gravity but allows it to maintain

a sports car design. It also lets the car sit

low with an overall maximum height of

53.2 inches, a rarity for battery-powered


The battery will provide 280 miles of

range and is fast-charging (up to 270 kW)

compatible, adding a claimed 60 miles of

charge in 5 minutes in ideal conditions.

The Folgore is the fastest of the three new

GTs, but at 4,982 pounds also the heaviest.

(The battery alone accounts for 1,300 of

those pounds.) Nevertheless, Maserati

claims the Folgore GT will be the fastest

all-electric luxury option with 2.7-second

acceleration to reach 60 mph and 8.8

seconds to 120 mph. The top speed is

nearly 200 mph.

The most similar EV is the Porsche Taycan

with a 225-mile range on a similarly sized

battery. The Taycan sits taller and only

reaches 482 horsepower but weighs close

to the same as the GranTurismo Folgore.

The 4S version takes 3.8 seconds to get

to 60 mph. The “Vehicle Domain Control

Module” brings four driving modes: Max

Range (for the Folgore) or Comfort, GT,

Sport and the sportiest Corsa. The VDCM is

essentially the car’s brain and controls the

energy, torque and vertical dynamics.

Different regeneration modes will be

employed to recuperate energy while


October 2022 94

Motor Aşin showed up at Frankfurt Automechanika

brand, our motto is already ‘we are near

you’. Especially with the pandemic, we felt

the need to spread the culture we learned

in the domestic market to export channels.

Once we were passive sellers. Customers

would come and find us. This is based upon

the value of both ourselves and the brands

we represent. However, the changing

dynamics pushed us to be in those markets

with more active marketing strategies.

We made a good structuring in our export

department related to this. We switched to

a system where each region is responsible

for itself and we started to gain from this

system. Especially with the Ukraine-Russia

crisis, we were excited to be a market

where Russian and Ukrainian customers

showed interest. Africa and then South

America are our target markets. Eastern

Europe is a valuable region for us and we

are also working on it.

Motor Aşin, which is one of the important

brands of the spare parts and after-sales

sector in the automotive and commercial

vehicle market in our country, appeared at

the Automechanika Frankfurt fair that was

held in Germany in September. Saim Aşcı,

CEO of Motor Aşin, underlining that they

had participated in Automechanika Dubai

and Moscow fairs before, said that they

wanted to meet with industry partners and

carry the difference of Motor Aşin, which is

a Turkish brand, to Europe.

First of all, can you give brief

information about Motor Aşin?

Motor Aşin is a 50-year-old family company

that was founded by my father and uncle.

Our first establishment was in Elazığ.

Afterwards, we continued to wholesale,

import and export, and we have come

this far. We are currently the distributor

of more than 200 premium brands in 7

different locations with our more than

300 employees. We have more than 4000

domestic at home and we have hundreds

of customers in more than 70 countries

which we do export activities.

Which ones are more effective when

we look at the potential of the

countries you export to?

While our relations with neighboring

countries come to the fore, the Turkic

Republics, Far East and Europe are among

the leading export markets for us. We, as

both a brand and a country, have more

capacity and intensive work for these

areas. The production capabilities, logistics

and other factors are very important here.

Are there new target markets?

We evaluate the event from two aspects

as internal and external dynamics. We

aim to increase our closeness with our

customers by further strengthening the

branching logic within ourselves. As a

What are your goals as a brand in the

next period?

We are making our customers feel our

closeness with the visits we make and will

make in their own countries with our wellknown

brand awareness by expanding our

staff. We are aiming to increase our export

rate, which is currently 20%, to 40%.

We are continuing to work to achieve these

goals within our 3-year strategic planning.

We will do everything we need to do on

both the back of house and front of house.

Turkey, as a country, is a major

market for the automotive supply

industry. If we need to evaluate what

has happened in terms of the sector

recently, how does the world see us as

a country?

The geopolitical point where our country

is located is really valuable. When we

evaluate our richness in both knowhow

and qualified personnel together,

we can bring the country’s position to a

much better place in the sector by being

managed by a superior mind very well.

When we look at the sector so far, the

conventional, that is, the old traditional

automotive market, has moved towards

another point by digitizing itself. There

is a transition period here. In tradition,

we, as the main manufacturer or as the

patent holder, have a somewhat delayed

October 2022 98

structure. That we do not have an engine

of our own can be given as an example of

this. We needed to catch a development

point right at this time for change, and we

caught it with TOGG. The important thing

is to be able to export and produce with

added value. Being able to expand with

technological products supports us in this

regard. We can easily see where our brand

value has reached in the breakthroughs

made in the Defense Industry. I am sure

that our own national project will gain

a respectable place in the world both

in terms of technology and qualified

personnel. These are very valuable and

important. When a good team with

qualified personnel emerges against all

these transformations and evolutions, it

will bring great benefits to the country

in academic and commercial terms due

to location that we are advantageous


We must come out of the position of

a country that realizes its production

capabilities under the moderation of

others. We are evolving to this point.

Because there is no certain know-how

before, you have to make that partnership.

However, after obtaining a certain

knowledge and experience, we must reveal

a value of our own. With this perspective,

TOGG is very valuable. It is a formation that

moves within itself and with its own design.

Although it finds its solution partner from

abroad, it is very valuable that it is master

mind and it itself manage.


99 2022

Weak euro

taking a toll

on Türkiye’s


With the euro falling against the U.S. dollar,

some exporting industries in Türkiye are

bearing the brunt as they pay for imports in

dollars but collect export revenues mostly

in euros.

The euro fell below parity with the dollar,

diving to its lowest level in 20 years.

The textile sector, whose export revenues

amounted to $21.5 billion in the past

year, pays for cotton it imports in the

U.S. dollar, but some 70 percent of the

industry’s exports go to Europe. Another

sector affected by the euro-dollar parity is

the fisheries sector, which sells most of its

products to the continent.

The textile sector already had problems

accessing financing, and now on top of that

came the weakening of the euro, which

erodes the revenues of the companies

in the industry, said Burak Sertbaş, the

chair of the Aegean Apparel Exporters’

Association (EHİB).

“Inputs used in the sector are paid in the

dollar, but export revenues in euro. Prices

of exported products also depressed due

to the expectations regarding the global

recession,” Sertbaş explained, warning

that the industry’s exports may come to a

halt and even decline in the second half of


The apparel and ready-wear clothing

sector’s exports rose by 3 percent in terms

of the euro from 118 million euros to 122

million euros in July, but in terms of the

dollar, they fell by 11 percent from $140

million to $125 million, he said. “Probably

this trend will continue in coming months.”

Some European nations import goods from

Asia, making payments in the dollar, and

amid the weakening of the euro against the

dollar, some European importers may turn

to Türkiye, he added. “If this happens, it

can make up for some of our losses.”

The situation is no different in the

aquaculture sector. Export revenues of the

sector increased by 33.5 percent in terms

of euro, but the rise was only 20 percent in

terms of the dollar.

Companies operating in the industry pay

for most of the inputs in the dollar, said

Bedri Girit from the Aegean Fisheries and

Animal Products Exporters’ Association.

Some seven of the industry’s top 10 export

markets are in Europe, he noted, stressing

that companies are losing money due to

the weaker euro.

In July, Türkiye’s exports increased more

than 13 percent to $18.6 billion, according

to the latest data from the Trade Ministry.

Among the top five export markets were

Germany at $1.5 billion and Italy at $844


Last month, exports to the European

Union rose by 5.2 percent to $7.4 billion,

accounting for nearly 40 percent of all

exports. Exports to the bloc increased from

$51 billion in January-July last year to $60.7

billion in the same period of 2022, which

corresponded to 42 percent of Türkiye’s

total export revenues.

October 2022 100

Electric Thinking

for Today and


On its return to Automechanika, Gates selected ‘Electric Thinking’ as a key theme for its show stand.

This theme supports Gates’ belief that to manage a successful transition into vehicle electrification,

automotive repair workshops will need relevant products and technologies.

A short film, premiering at the show,

illustrates Gates’ commitment to

innovation by developing new solutions for

the next generation of automobiles. The

story focuses on Senteret, a family- owned

garage based in Norway - a country that is

leading the drive towards a more complete

Electric Vehicle (EV) parc.

“We want parts distributors to know that

we will be doing everything we can to help

them inspire their garage customers as

they adapt to the new opportunities that

electrification can deliver,” said Steven

Zimmer, VP Automotive Aftermarket,

Gates EMEA. “We are extending our

product ranges, introducing new ones, and

developing specialist technical support

networks to help get them charged-up and

ready for an electric future.”

Successful Original Equipment (OE)

collaborations have enabled Gates to

develop aftermarket parts programmes

for Hybrids and EVs. When it comes to

new powertrain systems and technologies,

Gates is at the forefront of vehicle systems

design and the development of dynamic

systems capabilities.

“We develop and manufacture parts. We

understand the market. Such expertise

allows us to set standards for quality

and reliability in the aftermarket, which

represents a significant part of our

business,” highlights Steven. EV batteries

require precise temperature control via the

thermal management system. Moreover,

the materials used in these thermal

management hoses are evolving to include

thermoplastic designs for weight savings,

greater flexibility, and easier installation.

The Gates E-CoolTM range of Electric Water

Pumps is designed to meet or exceed OE

specifications. The Gates range of OEexact

Modular Coolant Hose assemblies

for EVs and Hybrids include any standard

fit sensors, OE-exact connectors and are

made from the same materials as the OE

products they are designed to replace.

“We also supply Electric PowerSteering

belts, Electric Parking Brake belts and

have additional plans to add replacement

parts for EV HVAC systems. For Hybrids,

we recently announced extensions to the

E-StartTM range as well,” says Steven.

Each E-Start Kit part number includes an

E-StartTM Micro-V Belt plus the related

E-StartTM Micro- V Belt Tensioner and

any Idlers needed for specific applications.

Gates’ customers will be excited by the

latest extension, which includes popular

models such as the Audi A4 2.0 Mild Hybrid

and the Audi Q5 Quattro 2.0 Mild Hybrid.

Casper Haenbeukers, VP, Global Engine

Systems Powertrain Engineering, said that

it was the launch of the E-StartTM range

that helped build the association of Gates

belts and kits with a wide range of Hybrid

vehicles. However, he states Gates will

continue to develop and support the legacy

products for the Internal Combustion

Engine (ICE) market:

“By 2030, it is estimated that only around

8% of the car parc will be fully electric

in EMEA. The remainder will be largely

Hybrids, in any configuration, featuring ICE

technology such as power recuperation

systems and power boost modes. Many will

be fitted with Gates belts and tensioners

that are designed for maximum efficiency

and durability.”

The future is a more electrified vehicle

parc. That means opportunities for

distributors and their garage customers in

the independent aftermarket. In order to

manage the successful transition, they will

need more information. They will require

the right parts from the right brand. Steven

Zimmer points out that Gates is already

able to supply market-leading products for

EVs and Hybrids:

“We are already able to demonstrate

great coverage on many of our ranges,

we have dedicated installation guidance,

professional tools, technical tips, and

expert training programmes. Gates is well

placed to be that brand.”

October 2022 102

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