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Automotive Exports October 2022

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Monthly automotive aftermarket magazine<br />

GROUP CHAIRMAN<br />

H. FERRUH ISIK<br />

PUBLISHER:<br />

İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Managing Editor (Responsible)<br />

Mehmet Söztutan<br />

mehmet.soztutan@img.com.tr<br />

Editor<br />

Ali Erdem<br />

ali.erdem@img.com.tr<br />

EDİToR<br />

Mehmet Soztutan, Editor-in-Chief<br />

mehmet.soztutan@img.com.tr<br />

Advertising Managers<br />

Adem Saçın<br />

+90 505 577 36 42<br />

adem.sacin@img.com.tr<br />

Enes Karadayı<br />

enes.karadayi@img.com.tr<br />

International Marketing Coordinator<br />

Ayca Sarioglu<br />

ayca.sarioglu@img.com.tr<br />

Editor<br />

Yaren Kayıkçı<br />

yaren.kayikci@img.com.tr<br />

Yusuf Okçu<br />

yusuf.okcu@img.com.tr<br />

Finance Manager<br />

Cuma Karaman<br />

cuma.karaman@img.com.tr<br />

Digital Assets Manager<br />

Emre Yener<br />

emre.yener@img.com.tr<br />

Technical Manager<br />

Tayfun Aydın<br />

tayfun.aydin@img.com.tr<br />

Design & Graphics<br />

Sami aktaş<br />

sami.aktas@img.com.tr<br />

Accountant<br />

Yusuf Demirkazık<br />

yusuf.demirkazik@img.com.tr<br />

Subsciption<br />

İsmail Özçelik<br />

ismail.ozcelik@img.com.tr<br />

HEAD OFFICE:<br />

İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Ihlas Media Center<br />

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

Yenibosna Bahcelievler, Istanbul / TURKEY<br />

Tel: +90 212 454 22 22<br />

www.img.com.tr sales@img.com.tr<br />

KONYA:<br />

Metin Demir<br />

Hazım Uluşahin İş Merkezi C Blok<br />

Kat: 6 No: 603-604-605 KONYA<br />

Tel: (90.332)238 10 71 Fax: (90.332)238 01 74<br />

PRINTED BY:<br />

İHLAS GAZETECİLİK A.Ş.<br />

Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza<br />

No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL<br />

Tel: 0212 454 30 00<br />

www.ihlasmatbaacilik.com<br />

Paris rendezvous of the industry<br />

The Turkish automotive industry has been able to consolidate and restructure its market<br />

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

automotive sector has become an integral part of the global network of production bases.<br />

The exports by Turkish automotive sector, which is the major power of the economy,<br />

reached remarkable figures in the last decade. The automotive industry has been active since<br />

the early seventies. Initially, the majority of the market development was based on imports<br />

and some level of local system integration. Since the full integration to the European Customs<br />

Union in 1994, Türkiye has become a major production platform for global automotive<br />

manufacturers and exporters.<br />

Currently, there are major multinational vehicle manufacturers with their own production<br />

facilities in Türkiye. While some of these companies are engaged in a joint venture with<br />

Turkish companies, others are operating independently.<br />

The Turkish automotive components industry reaches into many different sub-sectors of<br />

activity. Turkish producers of parts and components have attained high standards reflected<br />

by large export volumes to the Western countries. There are numerous producers of<br />

automotive components and services in Türkiye. More than half of these manufacturers<br />

compete in international markets and set high standards of export figures. Among them are<br />

many small and medium manufacturers with advanced technologies, constant updates and<br />

support from outside Türkiye, and a dynamic company structure. Many companies operating<br />

in the Turkish market possesses international certifications, enhancing their global market<br />

position.<br />

The Turkish automotive supplier industry produces almost all types of parts, components and<br />

spare parts such as engines and engine parts, power train parts and components, brake and<br />

clutch parts and components, hydraulic and pneumatic systems, suspension systems, security<br />

systems, rubber and plastic parts, chassis, frames and parts, casting and forging, electrical<br />

equipment and parts, lighting systems, accumulator batteries, seats etc.<br />

We think that technology will always be the key for the survival of the automotive industry.<br />

History says so.<br />

This month, we are at Equip Auto-Paris <strong>2022</strong>. We are convinced that the event would be<br />

instrumental to increase business opportunities in the automotive industry.<br />

Our publications remain at the service of those businesses people seeking to increase their<br />

share in the increasingly competitive foreign markets.<br />

We wish all business people success and lucrative business.<br />

automotiveexport<br />

automotiveexports


Inside Tesla’s drive to keep<br />

Musk’s battery promise<br />

The secret behind Elon Musk’s goal of<br />

selling 20 million Tesla’s a year by 2030 lies<br />

in its pioneering battery technology.<br />

The good news is that by using bigger cells<br />

and a new process to dry-coat electrodes,<br />

Tesla could halve the cost of a Model Y<br />

battery, saving more than 8% of the car’s<br />

U.S. starting price, battery experts with ties<br />

to the company said.<br />

The bad news is that it’s only halfway<br />

there, according to 12 experts close to<br />

Tesla or familiar with its new technology.<br />

That’s because the dry-coating technique<br />

used to produce the bigger cells in Tesla’s<br />

4680 battery is so new and unproven that<br />

the company is having trouble scaling up<br />

manufacturing to the point where the<br />

big cost savings kick in, the experts told<br />

Reuters.<br />

“They just aren’t ready for mass<br />

production,” said one of the experts close<br />

to Tesla.<br />

Still, the gains Tesla has already made in<br />

cutting battery production costs in the past<br />

two years could help boost profits and<br />

extend its lead over most electric vehicle<br />

(EV) rivals.<br />

Musk’s promised improvements in battery<br />

cost and performance are seen by investors<br />

as critical to Tesla’s quest to usher in an era<br />

where it can sell a $25,000 EV for a profit<br />

- and stand a better chance of hitting its<br />

2030 targets.<br />

Battery systems are the most expensive<br />

single element in most EVs, so making<br />

lower-cost, high-performance packs is key<br />

to producing affordable electric cars that<br />

can go toe to toe with combustion-engine<br />

rivals on sticker prices.<br />

Tesla is one of only a handful of major<br />

automakers that produce their own EV<br />

batteries and by manufacturing Model Y<br />

cells at U.S. plants, the SUV will remain<br />

eligible for U.S. tax credits when many rival<br />

EVs may no longer qualify.<br />

Among the 12 battery experts Reuters<br />

spoke with, nine have close ties to Tesla<br />

and three of the nine have examined Tesla’s<br />

new and old battery technology inside and<br />

out through teardowns.<br />

Tesla did not respond to requests for<br />

comment. The sources predict that Tesla<br />

will find it difficult to fully implement the<br />

new dry-coating manufacturing process<br />

before the end of this year and perhaps not<br />

until 2023.<br />

<strong>October</strong> <strong>2022</strong> 16


Stan Whittingham, a co-inventor of lithiumion<br />

batteries and a 2019 Nobel laureate,<br />

believes Tesla Chief Executive Elon Musk<br />

has been overly optimistic about the<br />

time frame for commercializing the new<br />

technique. “I think he will solve it, but it<br />

won’t be as quick as he likes. It’s going to<br />

take some time to really test it,” he said.<br />

In August, Musk told shareholders Tesla<br />

would be producing high volumes of 4680<br />

batteries by the end of <strong>2022</strong>.<br />

According to the experts, Tesla has only<br />

been able to cut the Model Y’s battery<br />

cost by between $2,000 and $3,000 so far,<br />

about half the savings Tesla had planned<br />

for the 4680 battery, which it unveiled two<br />

years ago.<br />

But those savings have come mainly from<br />

the design of the new 4680 cells, which are<br />

bigger than those in Tesla’s current 2170<br />

battery, they said.<br />

But the heart of the drive to push down<br />

costs is the dry-coating technology, which<br />

Musk has described as revolutionary but<br />

difficult to execute.<br />

According to the sources, it should deliver<br />

as much as half of the $5,500 cost savings<br />

Tesla hopes to achieve, by slashing<br />

manufacturing costs and one-time capital<br />

spending.<br />

Tesla acquired the know-how in 2019<br />

when it paid over $200 million for Maxwell<br />

Technologies, a company in San Diego<br />

making ultracapacitors, which store energy<br />

for devices that need quick bursts of<br />

electricity, such as camera flashes.<br />

Building on Maxwell’s technology, Tesla<br />

began making 4680 dry cells this year,<br />

first in a pilot near its Fremont, California<br />

plant and more recently at its new global<br />

headquarters in Austin, Texas.<br />

The technology allows Tesla to ditch the<br />

older, more complex and costly wetcoating<br />

process. It’s expensive because it<br />

needs a substantial amount of electricity,<br />

machinery, factory space, time, and a large<br />

labor force.<br />

To coat electrodes in the wet process,<br />

battery producers mix the materials with<br />

toxic binder solvents. Once coated, the<br />

electrodes are dried in massive ovens,<br />

with the toxic solvents that evaporate in<br />

the process being recovered, treated and<br />

recycled – all adding to the cost.<br />

With the new technology, electrodes are<br />

coated using different binders with little<br />

use of liquids, so they don’t need to be<br />

dried. That means it’s cheaper, faster and<br />

also less environmentally damaging.<br />

Because of its simplicity, the process allows<br />

Tesla to cut capital spending by a third and<br />

slash both the footprint of a factory and<br />

its energy consumption to a 10th of what<br />

would be needed for the wet process, Tesla<br />

has said.<br />

But the company has had trouble<br />

commercializing the process, the sources<br />

said.<br />

Maxwell developed its dry-coat process<br />

for ultracapacitors, but the challenge with<br />

coating electrodes for EV batteries is that<br />

they are much larger and thicker, which<br />

makes it hard to coat them with consistent<br />

quality at mass-production speeds.<br />

“They can produce in small volume, but<br />

when they started big volume production,<br />

Tesla ended up with many rejects, too<br />

many,” one of the sources with ties to Tesla<br />

told Reuters.<br />

Production yields were so low that all the<br />

anticipated cost savings from the new<br />

process were lost, the source said.<br />

If all the potential efficiencies from drycoating<br />

and the bigger cells are realized,<br />

the manufacturing cost for Model Y’s 4680<br />

battery pack should fall to $5,000 to $5,500<br />

– roughly half the cost of the 2170 pack,<br />

according to the sources.<br />

The rising cost of battery materials and<br />

energy pose a risk to those forecasts,<br />

however, and Tesla has not yet been able<br />

to significantly improve the new battery’s<br />

energy density or the amount of power it<br />

packs, as Musk has promised.<br />

Still, despite those factors, the savings Tesla<br />

is expected to achieve will end up making<br />

the 4680 battery the industry’s “best in<br />

class” for the foreseeable future, one<br />

source said.<br />

Much of the $2,000 to $3,000 cost savings<br />

achieved with the 4680 battery so far have<br />

come from other improvements, and using<br />

bigger cells has proven particularly potent,<br />

the experts said.<br />

The 4680 cells are 5.5 times the size of the<br />

2170 cells by volume. The older cylindrical<br />

cells measure 21 millimeters in diameter<br />

and 70 millimeters in height, hence the<br />

name. The 4680 cells have a 46 millimeters<br />

diameter and are 80 millimeters high.<br />

With the older technology, Tesla needs<br />

about 4,400 cells to power the Model Y<br />

and there are 17,600 points that need to<br />

be welded – four per cell – to produce a<br />

pack that can be integrated into the car, the<br />

sources said.<br />

The 4680 battery pack only needs 830 cells<br />

and Tesla has changed the design so that<br />

there are only two weld points per cell,<br />

slashing the welding to 1,660 points and<br />

leading to significant cost savings.<br />

The simpler design also means there are<br />

fewer connectors and other components,<br />

which has allowed Tesla to save further on<br />

labor costs and machine time.<br />

Another source of efficiency has been the<br />

larger cell’s far sturdier outer case. Tesla<br />

can now bond the cells together with<br />

adhesive into a rigid honeycomb-like pack<br />

which is then connected directly to the<br />

inner body structure of the Model Y.<br />

This eliminates the intermediate step of<br />

bundling cells into larger modules which<br />

are then installed in a traditional battery<br />

pack, the sources said.<br />

By shifting to this “cell to vehicle” design,<br />

Tesla can reduce the weight of a traditional<br />

1,200-pound battery pack by 55 pounds<br />

or more – saving about $500 to $600 per<br />

pack, one of the sources said.<br />

But mastering the dry-coating technique<br />

remains the holy grail.<br />

“Bulking up the battery cell helped a lot<br />

in boosting efficiency, but pushing for<br />

50% cost savings for the cell as a whole is<br />

another matter,” one source said.<br />

“That will depend on whether Tesla can<br />

deploy the dry-coating process successfully<br />

in a factory.”<br />

<strong>October</strong><br />

<strong>2022</strong><br />

18


Türkiye’s first<br />

indigenous<br />

car flown to<br />

Argentina for<br />

winter tests<br />

Türkiye’s first domestically produced car<br />

has been transported to Argentina to<br />

perform winter tests, just over a month<br />

before its mass rollout is due to begin.<br />

Togg was loaded onto a Turkish Cargo plane<br />

at Istanbul Airport before it was flown to<br />

Tierra del Fuego, the southernmost and<br />

smallest Argentine province, to be tested<br />

in extreme weather conditions, according<br />

to a video shared by the Turkish Airlines<br />

subsidiary.<br />

It marks the latest of Togg’s many roadsafety<br />

performance and range/battery tests<br />

that have been ongoing at accredited test<br />

centers in different parts of the world.<br />

Türkiye’s Automobile Joint Venture<br />

Group, known as Togg, is the consortium<br />

developing the car.<br />

“We are celebrating the successful<br />

performance shown at international tests<br />

by the Togg smart device, one of the most<br />

ambitious projects of Türkiye,” said Turkish<br />

Airlines Chairperson of the Board Ahmet<br />

Bolat.<br />

“Doing our part as the national flag carrier<br />

with the power of being the airline that<br />

flies to more countries than any other in<br />

the world, we are proud to deliver the<br />

Turkish automobile and our country’s<br />

technology exports worldwide,” Bolat said<br />

in a statement.<br />

Turkish Airlines had helped Togg make its<br />

international debut as it flew the car to<br />

Las Vegas for the Consumer Electronics<br />

Show (CES), one of the world’s largest<br />

technology and gadget fairs, in January.<br />

The consortium showed off the “Transition<br />

Concept Smart Device,” an all-electric<br />

fastback concept car.<br />

“From the first day we set out on our<br />

journey, we have been acting on the<br />

principle of choosing our business partners<br />

among the best in our country and the<br />

world,” said Gürcan Karakaş, CEO of Togg.<br />

Following the “Transition Concept Smart<br />

Device,” Karakaş said have now undertaken<br />

yet another solid collaboration by<br />

transporting the Togg Smart Device to the<br />

accredited test center in Ushuaia, a resort<br />

town in Argentina located on the Tierra del<br />

Fuego archipelago and the closest point to<br />

the South Pole.<br />

“Our tests continue in various accredited<br />

test centers, which are the world’s leading<br />

ones. We stand by our word be it snow,<br />

winter or mud, even on the other side of<br />

the world if need be. We are taking firm<br />

steps towards our goal to launch on the<br />

promised date,” said Karakaş.<br />

Togg is due to launch mass production<br />

of its all-electric SUV. The SUV in the<br />

C-segment will hit the market in the first<br />

quarter of 2023 and will be the first electric<br />

sport utility vehicle produced in continental<br />

Europe by a nontraditional manufacturer.<br />

Togg was launched on June 25, 2018.<br />

President Recep Tayyip Erdoğan, in<br />

December 2019, unveiled prototypes for<br />

the SUV and a sedan, both fully electric<br />

and C-segment models. The brand aims<br />

to produce 1 million vehicles across five<br />

different segments by 2030.<br />

Togg said it would produce five different<br />

models, namely SUV, sedan, C-hatchback,<br />

B-SUV and B-MPV, through 2030. Mass<br />

production of the SUV will be followed by<br />

the sedan.<br />

Construction of Togg’s engineering, design<br />

and production facilities began in mid-<br />

2020. Built on an area of 1.2 million square<br />

meters (12.9 million square feet) in the<br />

Gemlik district of northwestern Bursa<br />

province, the facility is scheduled to be<br />

completed soon.<br />

Togg has opted for advanced lithium-ion<br />

battery technology company Farasis as<br />

its business partner for the battery. The<br />

homegrown car can reach 80% charge in<br />

under 30 minutes with fast charging. It will<br />

have a range of between 300 kilometers to<br />

500 kilometers (186 miles to 310 miles).<br />

<strong>October</strong> <strong>2022</strong> 20


Veoneer and emotion 3D recognized for<br />

“Most Innovative In-Cabin Perception Application”<br />

The AutoSens Award celebrates the best<br />

and brightest working at the cutting-edge<br />

of innovation in ADAS and autonomous<br />

vehicle technology. At an event in Brussels,<br />

Veoneer and emotion3D were honored with<br />

the AutoSens Award in the category Most<br />

Innovative In-Cabin Perception Application.<br />

It is a fact that a car crash impacts people<br />

in different ways as body factors play a role<br />

in accident injury severity. In fact, a female<br />

occupant is 73% more likely to suffer from<br />

serious injuries than seatbelt-wearing male<br />

occupants, according to the University<br />

of Virginia. Only when the Restraint<br />

Control System can distinguish between<br />

the occupant’s individual characteristics,<br />

optimal protection for everybody can be<br />

achieved. The Smart-RCS uses a touchless<br />

3D imaging sensor to derive precise realtime<br />

information about each occupant:<br />

situational factors like body position and<br />

body crash dynamics as well as body<br />

physique, age and sex so that the smart-RCS<br />

computes the optimal airbag deployment<br />

strategy tailored to each individual<br />

occupant.<br />

“We are deeply honored for receiving the<br />

AutoSens Award for our Smart-RCS - saving<br />

lives when the unthinkable happens, says<br />

Jacob Svanberg, CEO of Veoneer.<br />

<strong>October</strong> <strong>2022</strong> 22


Electrified, hybrid cars grab larger share in<br />

Türkiye as total sales fall<br />

Sales of electric vehicles (EVs) in Türkiye<br />

nearly tripled from a year ago in the first<br />

eight months, with their gasoline-electric<br />

hybrid rivals also rising, industry data<br />

shows, as fossil-fuel-powered cars lost<br />

market share and total sales dropped.<br />

Some 3,283 electric vehicles were sold<br />

from January through August, according to<br />

the data from the <strong>Automotive</strong> Distributors<br />

Association (ODD), a 174.5% increase from<br />

some 1,196 that were sold in the same<br />

period a year ago.<br />

Overall sales of passenger cars and light<br />

commercial vehicles in Türkiye slipped 8.5%<br />

year-over-year in the first eight months<br />

to 458,446 units, the data showed, amid<br />

soaring prices and as problems from<br />

logistics bottlenecks to an ongoing chip<br />

shortage curbed production.<br />

Car sales were down 9.4% from a year ago<br />

to 354,543 vehicles, while light commercial<br />

vehicles dropped 5.2% to 103,903,<br />

according to the ODD.<br />

Cars powered by gasoline and diesel are<br />

losing market but remain leaders.<br />

Some 250,401 gasoline-powered vehicles<br />

and 60,316 diesel cars have been sold in<br />

the first eight months of the year. Both<br />

were down from 256,815 and 80,643<br />

units sold in the same period last year,<br />

respectively.<br />

Hybrid vehicle sales maintained an upward<br />

trend and jumped 2.9% to 34,265 units in<br />

the January-August period, up from 33,287<br />

sold a year ago.<br />

Cars powered by gasoline and diesel<br />

accounted for 87.6% of the overall sales in<br />

the first eight months, down from 86.2% in<br />

the same period of 2021.<br />

Battery-powered and hybrid vehicles<br />

boosted their market shares to 0.9% and<br />

9.7%, up from 0.3% and 8.5%, respectively,<br />

the data showed.<br />

The share of electric and hybrid cars, which<br />

are becoming widespread in the world,<br />

remains at low levels, yet the growth in<br />

sales shows a soaring interest of consumers<br />

in the electrified market.<br />

This interest is expected to gain major<br />

momentum as Türkiye prepares to kickstart<br />

the mass rollout of its first domestically<br />

produced car. Türkiye’s Automobile Joint<br />

Venture Group, known as Togg, is the<br />

consortium developing the car.<br />

Togg is due to launch mass production<br />

of its all-electric SUV. The SUV in the<br />

C-segment will hit the market in the<br />

first quarter of 2023 and will be the first<br />

electric sport utility vehicle produced in<br />

continental Europe by a nontraditional<br />

manufacturer. Togg was launched on<br />

June 25, 2018. President Recep Tayyip<br />

Erdoğan, in December 2019, unveiled<br />

prototypes for the SUV and a sedan, both<br />

fully electric and C-segment models. The<br />

brand aims to produce 1 million vehicles<br />

across five different segments by 2030.<br />

Togg said it would produce five different<br />

models, namely an SUV, sedan,<br />

C-hatchback, B-SUV and B-MPV, through<br />

2030. Mass production of the SUV will be<br />

followed by the sedan.<br />

<strong>October</strong> <strong>2022</strong> 24


Turkish minister<br />

invites US<br />

businesses<br />

to invest in<br />

Türkiye’s tech<br />

start-ups<br />

Inviting the U.S. businesspeople to invest in<br />

Türkiye’s technology start-ups, the Turkish<br />

industry and technology minister said,<br />

“Türkiye has the potential to be a regional<br />

technology center for the U.S. companies.”<br />

Speaking at Türkiye Investment Conference,<br />

organized by the Turkish Foreign Economic<br />

Relations Board’s (DEIK) Türkiye-U.S.<br />

Business Council in New York, Mustafa<br />

Varank said that the world is in a difficult<br />

period due to the pandemic, wars,<br />

inflation, energy crises, unstable supply,<br />

and value chains.<br />

He added that it is necessary to insist<br />

on continuing public and commercial<br />

diplomacy to solve the problems of the<br />

global economy.<br />

Stressing that Türkiye has proven that<br />

it has a resilient, robust, agile, and<br />

flexible economy with its performance<br />

in the pandemic, Varank noted that,<br />

unlike many other manufacturers,<br />

Turkish manufacturers have successfully<br />

fulfilled their domestic and international<br />

commitments during the pandemic.<br />

Emphasizing that many multinational<br />

companies prefer Türkiye as a research,<br />

design, production, export, and logistics<br />

center at the intersection of Europe, Asia<br />

and Africa, the minister said, “Some global<br />

companies have already moved some of<br />

their operations to Türkiye, while others<br />

have increased their capacities.<br />

“The number of international companies<br />

doing business in Türkiye has reached<br />

76,000, of which 2,000 are from the U.S..”<br />

He said over 500 research and<br />

development (R&D) and innovation centers<br />

of international investors are located in<br />

Türkiye.<br />

Recalling that the U.S. was Türkiye’s second<br />

largest export market and fourth largest<br />

import partner last year, Varank said that<br />

the direct investment inflow from the U.S.<br />

to Türkiye increased by 45% last year to<br />

$14 billion (TL 257 billion), making the U.S.<br />

second largest investor in Türkiye.<br />

He said that the figures increased but far<br />

below potential, adding that despite all<br />

disagreements, Turkish President Recep<br />

Tayyip Erdogan and U.S. President Joe<br />

Biden always express their support for<br />

improving the business environment.<br />

“We believe that the new U.S. policy to<br />

build resilient supply chains, stimulate<br />

American manufacturing and foster broadbased<br />

growth can provide opportunities<br />

for both Turkish and American companies,”<br />

he underlined. Türkiye attracts a large<br />

number of investments from global actors<br />

with its entrepreneurial business culture,<br />

young and tech-savvy population, talented<br />

engineers and competitive environment<br />

and services, the minister noted.<br />

He said the number of “unicorns” in the<br />

country, which was zero in 2019, increased<br />

to six currently, two of which were<br />

“decacorn.”<br />

The unicorn refers to start-ups whose value<br />

exceeded the $1 billion level while it was<br />

$10 billion for a decacorn.<br />

Türkiye has the potential to be a regional<br />

technology hub for U.S. companies, he<br />

highlighted.<br />

He said Türkiye’s start-up ecosystem<br />

received a $1.6 billion investment last year<br />

and $1.4 billion in the first half of this year.<br />

Varank stated that in the same period,<br />

Istanbul was the fourth most invested city<br />

after London, Paris, and Berlin and ranked<br />

first in Europe in game-related investments.<br />

Calling on the U.S. firms to invest in Turkish<br />

technology start-ups directly or through<br />

venture capital funds, Varank said, “You<br />

should invest in Türkiye and see the<br />

benefits of doing business in our region by<br />

opening up to the whole world from there.”<br />

<strong>October</strong> <strong>2022</strong> 26


Türkiye says $250B export target reachable<br />

despite global headwinds<br />

Türkiye is aiming for $250 billion (TL 4.55<br />

trillion) in exports this year, Trade Minister<br />

Mehmet Muş said , stressing that the<br />

country maintains the goal despite signs<br />

of a global slowdown and inflationary<br />

pressures. Muş was speaking at the 4th<br />

Türkiye Export Mobilization summit.<br />

The event was organized by Türkiye’s<br />

leading media group and Daily Sabah’s<br />

parent company, Turkuvaz Media, in the<br />

southeastern province of Gaziantep.<br />

The minister separately wrote on Twitter<br />

that exports in August hit an all-time<br />

monthly high yet again, reaffirming the<br />

views that the annual target would be<br />

achieved even before the year-end.<br />

Foreign sales jumped 13.1% year-overyear<br />

last month to $21.3 billion, Muş<br />

said. Imports rose at a much faster pace,<br />

jumping 40.7% to $32.6 billion<br />

Exporters have managed to achieve record<br />

sales in each month so far this year and in<br />

22 of the last 24 months.<br />

The trade deficit surged by 162% to a<br />

record $11.3 billion in August, data from<br />

the Turkish Exporters Assembly (TIM)<br />

showed. The shortfall in the first eight<br />

months jumped by 146.4% to $73.4 billion,<br />

mainly due to rising energy import costs.<br />

Deteriorating global conditions,<br />

exacerbated by the war in Ukraine, have<br />

raised concerns for the rest of the year.<br />

Russia’s invasion of its neighbor has<br />

sent global commodity prices soaring,<br />

endangering Türkiye’s economic program<br />

that aims to tackle high inflation with a<br />

current account surplus.<br />

<strong>Exports</strong> had ended 2021 at $225.4 billion,<br />

a figure that government and economists<br />

expected to reach $250 billion this year.<br />

Muş said that they want to diversify the<br />

regions that Turkish businesses export to,<br />

focusing on North and South America and<br />

East Asia, not just Europe. More than half<br />

of Türkiye’s export is destined for Europe,<br />

he said, however, the uncertainty in the<br />

region produces obstacles.<br />

“Compared to the 2021 period, our exports<br />

to this region increased by 17.2% in the<br />

January-August period,” the minister said,<br />

but this increase “is in a moderate trend<br />

compared to months.”<br />

“The uncertainty and slowdown in Europe<br />

weaken demand. For example, while our<br />

exports to the EU increased by 17.8% in<br />

June compared to the previous year, the<br />

increase was 5.2% in July and 2.7% in<br />

August.”<br />

“We are trying to diversify the market. We<br />

want to focus not only on Europe but also<br />

on North America, then on Latin America,<br />

some countries in the Far East. This will<br />

take some time, and expectations such as<br />

the slowdown in the world, the uncertainty<br />

in Europe and whether there will be a<br />

power cut or not inevitably pull down<br />

demand.”<br />

“The slowing demand there is pushing<br />

down our exports here,” he said.<br />

<strong>October</strong> <strong>2022</strong> 28


Toyota to invest around<br />

$5.3B in Japan, US for<br />

EV battery production<br />

Toyota will be investing 730<br />

billion yen ($5.3 billion) in<br />

Japan and the United States<br />

to boost the production<br />

of batteries for electric<br />

vehicles (EV), the Japanese<br />

automaker said.<br />

Production is set to start<br />

between 2024 and 2026 with<br />

an investment intended to<br />

augment battery production<br />

capacity in both countries<br />

by up to 40 gigawatt hours<br />

(GWh).<br />

The carmaker will invest about 400 billion yen in Toyota plants<br />

and Prime Planet Energy & Solutions Co., a joint venture with<br />

Panasonic Holdings Corp, plant in the western Japanese city of<br />

Himeji.<br />

In the U.S., about 325 billion yen will be invested in Toyota<br />

Battery Manufacturing in North Carolina.<br />

Automakers worldwide are spending billions of dollars to ramp<br />

up battery and electric vehicle production in the face of tougher<br />

environmental regulations. Toyota has scored success with the<br />

Prius and other hybrid models, which have an engine as well<br />

as a battery-driven electric motor, and so the company has at<br />

times been seen as a laggard on electric vehicles. But the global<br />

demand for electric vehicles is expected to grow in coming years<br />

as gas prices rise and concerns grow about the environment.<br />

Japanese rival Honda Motor Co. announced with major South<br />

Korean battery maker LG that they were investing $4.4 billion<br />

in a joint venture in the United States to produce batteries for<br />

Honda electric vehicles in the North American market, with mass<br />

production of advanced lithium-ion battery cells to start by the<br />

end of 2025. Toyota reiterated its position that “there is more<br />

than one option for achieving carbon neutrality,” highlighting<br />

how its efforts with hybrids and fuel cells run on hydrogen can<br />

also be solutions. The options may depend on where a customer<br />

lives, according to the manufacturer, based in the city of Toyota<br />

in central Japan.<br />

“This investment is aimed at enabling Toyota to flexibly meet<br />

the needs of its various customers in all countries and regions<br />

by offering multiple powertrains and providing as many options<br />

as possible,” it said in a statement. Other automakers, including<br />

Ford Motor Co., General Motors, Hyundai-Kia, Stellantis and<br />

VinFast have announced plans for U.S. battery plants. A new<br />

U.S. law offers an incentive to build batteries in North America,<br />

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

the cost of buying an electric vehicle. To qualify for the full credit,<br />

the electric vehicle must contain a battery built in North America<br />

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


Turkish exports hit all-time high for<br />

8th consecutive month<br />

Türkiye’s exports in August hit an all-time<br />

monthly high yet again, Trade Minister<br />

Mehmet Muş said, as the country<br />

achieved its annual target even before the<br />

year-end.<br />

Foreign sales jumped 13.1% year-overyear<br />

last month to $21.3 billion, Muş told<br />

a meeting in the southeastern province of<br />

Gaziantep. Imports rose at a much faster<br />

pace, jumping 40.7% to $32.6 billion, the<br />

ministry data showed.<br />

Exporters have managed to achieve<br />

record sales in each of the last 12 months.<br />

The trade deficit surged by nearly 162%<br />

to a record $11.3 billion in August, the<br />

data showed, as surging energy import<br />

costs continue to widen the shortfall. The<br />

deficit in the first eight months jumped by<br />

146.4% to $73.4 billion.<br />

Energy imports constituted some 27% of<br />

the total imports last month, Muş said.<br />

Deteriorating global conditions,<br />

exacerbated by the war in Ukraine, have<br />

raised concerns for the rest of the year.<br />

Russia’s invasion of its neighbor has<br />

sent global commodity prices soaring,<br />

endangering Türkiye’s economic program<br />

that aims to tackle high inflation with a<br />

current account surplus.<br />

Sales rose more than 18.3% year-overyear<br />

from January through August to<br />

$165.67 billion, while imports jumped<br />

40.7% to $239.13 billion, the data<br />

showed.<br />

<strong>Exports</strong> had ended 2021 at $225.4 billion,<br />

a figure that government and economists<br />

expected to reach $250 billion this year.<br />

The 12-month rolling exports topped $250<br />

billion as of last month.<br />

<strong>October</strong> <strong>2022</strong> 34


Toyota profit<br />

down in Q2 as<br />

chips shortage<br />

keeps customers<br />

waiting<br />

Toyota’s profit fell nearly 18% in the<br />

April-June quarter from the year before,<br />

as the semiconductor chip shortage that<br />

has slammed the auto industry dented<br />

production at Japan’s top automaker.<br />

Toyota Motor Corp. Reported a quarterly<br />

profit of 736.8 billion yen ($5.5 billion),<br />

down from 897.8 billion yen the previous<br />

year.<br />

Quarterly sales rose 7% to 8.49 trillion yen<br />

($63 billion).<br />

Toyota officials apologized to customers<br />

who have been waiting for their cars after<br />

putting in orders. Some have waited so<br />

long that the vehicle went through a model<br />

change in the meantime.<br />

Various problems apart from the chips<br />

shortage have hurt production, such as<br />

flooding in South Africa and pandemic<br />

lockdowns in Shanghai, according to the<br />

manufacturer based in Toyota City, central<br />

Japan.<br />

Electric vehicles, which need many chips,<br />

have been the worst hit by the global chips<br />

crunch. Rising material costs also hurt<br />

Toyota’s bottom line.<br />

The negatives offset the perks of a weaker<br />

Japanese yen. A cheap yen benefits<br />

Japanese exporters like Toyota by boosting<br />

the value of their overseas earnings when<br />

they are converted into yen.<br />

The favorable foreign exchange rate<br />

increased Toyota’s operating income for the<br />

quarter by 195 billion yen ($1.5 billion), the<br />

company said.<br />

Toyota sold about 2 million vehicles during<br />

the quarter, down from 2.1 million vehicles<br />

in the same period last year.<br />

But it kept unchanged its full fiscal year<br />

forecast to produce 9.7 million vehicles,<br />

saying output will pick up in the months<br />

ahead.<br />

Toyota posted record earnings in the last<br />

fiscal year through March, racking up a 2.85<br />

trillion-yen ($21 billion) profit, up nearly<br />

27% on year.<br />

For the fiscal year through March 2023,<br />

it’s forecasting a profit of 2.36 trillion yen<br />

($17.6 billion). The projection was revised<br />

upward from an earlier estimate of 2.26<br />

trillion yen ($16.9 billion).<br />

Toyota said it did not include numbers<br />

from its group truck maker Hino Motors<br />

because Hino hadn’t released a forecast.<br />

Hino acknowledged it had been falsifying<br />

emission and mileage data for 20 years<br />

and apologized for betraying its customers’<br />

trust. It has promised to prevent a<br />

recurrence.<br />

Toyota, which makes the Prius hybrid,<br />

Lexus luxury models and Camry sedan, has<br />

been boosting electric vehicle sales as the<br />

world’s interest in sustainability grows.<br />

At times it has been accused of lagging in<br />

electric vehicles, partly because it’s done<br />

well with hybrid vehicles, like the Prius,<br />

which includes a gasoline engine and an<br />

electric motor.<br />

The company expects to sell 10.7 million<br />

vehicles worldwide in the fiscal year<br />

through March 2023, up from nearly 10.4<br />

million vehicles in the previous fiscal year.<br />

<strong>October</strong> <strong>2022</strong> 36


Togg CEO test drives prototype on Turkish highway<br />

Türkiye’s Automobile Joint Venture Group<br />

(Togg) CEO Mehmet Gürcan Karakaş was<br />

captured on video during a test drive of<br />

the company’s domestically made vehicle<br />

on the North Marmara Highway at night,<br />

Anadolu Agency (AA) reported.<br />

The footage, obtained during the test drive,<br />

showed Karakaş driving the prototype<br />

vehicle, at a speed of about 100 kph (62.14<br />

mph).<br />

Seen as the country’s “second automobile<br />

revolution” and revived by President<br />

Recep Tayyip Erdoğan, Togg was officially<br />

established on June 25, 2018. A former<br />

executive at tech giant Bosch, Karakaş was<br />

appointed Togg’s chief executive officer<br />

on Sept. 1, 2018. Erdoğan, on Dec. 27,<br />

2019, unveiled prototypes for a sport<br />

utility vehicle (SUV) and a sedan, both fully<br />

electric and C-segment models.<br />

A consortium of five major companies,<br />

Togg will produce five different models – an<br />

SUV, sedan, C-hatchback, B-SUV and B-MPV<br />

– through 2030.<br />

<strong>October</strong> <strong>2022</strong> 38


Eurotexso accelerates the<br />

spare parts industry with<br />

its 32 years of experience<br />

Eurotexso, a company that emerged with<br />

the blending of long-term feasibility,<br />

planning and work with experience with<br />

32 years of commercial history, has the<br />

characteristics of a brand that both benefits<br />

the country’s economy by investing and<br />

plans to continuously contribute to the<br />

sector with its development strategies.<br />

After years of vigorous effort the company<br />

claims, it has become known in the<br />

international market for supplying quality<br />

spare parts , has won the loyalty of its<br />

customers, most of them being long-term<br />

business partners. Explaining the future<br />

goals of the brand to <strong>Automotive</strong> <strong>Exports</strong><br />

magazine, Eurotexso General Manager<br />

Cevat Aydoğdu answered the questions<br />

about the sector.<br />

Can you tell us about the foundation<br />

story of your brand? Which products<br />

do you have in your product range?<br />

Founded in 1987, Eurotexso is one of the<br />

world’s largest and most comprehensive<br />

suppliers of aftermarket spare parts for<br />

power steering systems.<br />

Can you tell us about your fields of<br />

activity? How do you work differently<br />

from your competitors to increase<br />

customer satisfaction?<br />

Besides offering high-quality items,<br />

Eurotexso claims that it has been a brand<br />

showing high regard for pre-and aftersales<br />

services to customers. The company<br />

supplies over 10 000 kinds of spare parts<br />

for steering systems: power steering oil<br />

seals, rack bar, bushings, bearings, sensors.<br />

What do you aim in your industry for<br />

the coming years?<br />

In addition to constantly upgrading product<br />

quality, we will expand the range of our<br />

products with the aim of becoming an evermore-comprehensive<br />

supplier of product<br />

to customers all over the world.<br />

How are you affected by the<br />

increasing export activities in the<br />

automotive sector? Does this<br />

momentum gained in recent years<br />

reflect on your exports? What are the<br />

regions you export to?<br />

Our products are marketed under the<br />

brand EUROTEXSO and they are highly<br />

popular globally especially in the Europe,<br />

Africa and Latin America due to the<br />

company’s long-help reputation for quality,<br />

precision, prompt delivery, large product<br />

range and competitive prices.<br />

<strong>October</strong> <strong>2022</strong> 40


GAYSAN, the leading manufacturer<br />

of gas springs in the industry<br />

Vedat Akdeniz, Vice General Manager<br />

of Gaysan, one of the main suppliers of<br />

the tractor and construction equipment<br />

manufacturers for 40 years, talked about<br />

the export targets of Gaysan to <strong>Automotive</strong><br />

<strong>Exports</strong> magazine.<br />

Can you tell us about the foundation<br />

story of your brand? What products<br />

do you have in your product range?<br />

Gaysan, established on 1980 with 20<br />

people in Halic District of Istanbul,<br />

improved its customer portfolio with its gas<br />

spring production and become one of the<br />

leader gas spring manufacturer in Turkey<br />

and the world.<br />

Gaysan manufactures and sells products<br />

with over 40 years of gas spring production<br />

experience customer focused with its<br />

innovative quality solutions.<br />

Can you tell us about your fields of<br />

activity?<br />

Gaysan manufactures gas springs for all<br />

industries, especially automotive, buses,<br />

heavy vehicles and tractors, Furniture,<br />

medical, marine and industry business<br />

with its innovative staff and R&D team<br />

that closely follows the developing and<br />

changing global technology. Gaysan,<br />

which is an OEM supplier of leading<br />

manufacturers, is a global company in its<br />

sector that exports its products to more<br />

than 70 countries.<br />

How do you work differently from<br />

your competitors to increase customer<br />

satisfaction?<br />

Gaysan’s business understanding is to<br />

present our products to its solution<br />

partners with well-designed, high quality<br />

and competitive prices. Our young and<br />

innovative team meets the needs of<br />

our customers all over the world, is a<br />

strong indicator of our dynamism. With<br />

our investments in technology and our<br />

continuous quality improvement goals,<br />

we ensure that our customers meet their<br />

satisfaction at the highest level.<br />

Beyond processing customer satisfaction<br />

surveys, etc. as points, with the<br />

understanding that customer satisfaction<br />

is about delivering quality products on<br />

time. We continue to increase customer<br />

satisfaction by producing in accordance<br />

with IATF 16949, ISO 9001, documents,<br />

and by producing and shipping these<br />

products in short periods of 3-4 weeks.<br />

The compliance of the environmental<br />

management system in accordance with<br />

ISO 14001 standards is an indicator of our<br />

success in creating an effective and efficient<br />

environmental management. With our ISO<br />

45001 certificate we already certify the<br />

importance of the environmental health.<br />

These are the elements that we consider<br />

positive in terms of customer satisfaction.<br />

Do you have different goals in your<br />

industry for the coming years?<br />

We are in close contact with the<br />

new projects of the world’s leading<br />

manufacturers for the automotive<br />

industry, which we have been working<br />

with for years. We are working to add<br />

new companies to which we are approved<br />

suppliers.<br />

Gaysan Gazli Amortisor A.S. has developed<br />

its product range in line with the needs of<br />

the automotive and other sectors and will<br />

continue to develop it in the future.<br />

How are you affected by the<br />

increasing export activities in the<br />

automotive sector? Does this<br />

momentum gained in recent years<br />

reflect on your exports? What are the<br />

regions you export to?<br />

Carve an out niche in the <strong>Automotive</strong><br />

market with the IATF 16949 certificate we<br />

held, Gaysan Gazli Amortisor A.S. provides<br />

direct products to automotive production<br />

lines in 8 countries, especially in Brazil and<br />

Germany. As an aftermarket, it exports to<br />

78 countries in the world.<br />

Do you plan to invest in different<br />

areas of the automotive industry?<br />

We think everyone should do what they<br />

know best. Based on this idea, we are<br />

chasing how to make the gas springs better,<br />

how to maintain our quality. As has been<br />

the case for years, we prevent the market<br />

problems with our work on gas springs<br />

needs in different markets.<br />

<strong>October</strong> <strong>2022</strong> 42


Gov’t support<br />

gives boost to<br />

micro export<br />

More and more small and medium-sized<br />

enterprises (SMEs) and other businesses<br />

are turning to e-export after the<br />

government granted tax breaks of up to 50<br />

percent to micro exporters last year.<br />

E-commerce volume soared 69 percent<br />

to reach 400 billion Turkish Liras in 2021,<br />

while the number of orders placed through<br />

those platforms increased by 46 percent<br />

to 3.4 billion, according to data from the<br />

Trade Ministry.<br />

Some 92 percent of e-trade took place<br />

within Türkiye, while the share of e-exports<br />

in this ecosystem was 4 percent.<br />

Most of the 500,000 companies, which<br />

engaged in e-commerce activities, sold<br />

their products in marketplaces, while<br />

around 26,000 of them used their own<br />

websites.<br />

The Trade Ministry recently unveiled a<br />

scheme dubbed “distant countries strategy,<br />

which aims to boost Türkiye’s share in<br />

global trade.<br />

“Micro exporters can also benefit from<br />

what the Trade Ministry offers to regular<br />

exporters. The regulation introduced last<br />

year, which offers tax breaks, will give a<br />

boost to micro exporters’ businesses,” said<br />

Mustafa Namoğlu, CEO of ikas.com.<br />

Under the support mechanism, The<br />

Trade Ministry help companies with their<br />

marketing activities, opening offices and<br />

stores abroad, he noted.<br />

Micro export is the type of export that<br />

covers shipments of up to 300 kilograms<br />

and 15,000 euros in value, Namoğlu<br />

explained.<br />

Through the system called the Electronic<br />

Trade Customs Declaration (ETCD), the<br />

Trade Ministry developed facilitates for<br />

small and medium-sized companies to<br />

carry out their export activities, Namoğlu<br />

said.<br />

“Under this system, SMEs do not need<br />

to register with an exporters’ association<br />

or file customs documents with customs<br />

brokers. Those companies can keep their<br />

products at the warehouses of authorized<br />

ETCD firms at no additional<br />

<strong>October</strong> <strong>2022</strong> 46


Snow Lake Lithium and LG Energy Solution collaborate<br />

to establish lithium supply chain in North America<br />

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

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

next step towards building the domestic supply chain for the North American electric vehicle market.<br />

Snow Lake Lithium and LGES will<br />

collaborate to explore the opportunity<br />

to create one of Canada’s first lithium<br />

hydroxide processing plants in CentrePort,<br />

Winnipeg, Manitoba. Under the terms<br />

of the MOU, Snow Lake Lithium will<br />

supply LGES with lithium over a 10-year<br />

period once production starts in 2025.<br />

The MOU and contemplated partnership<br />

will be subject to a number of conditions,<br />

including the completion of due diligence<br />

from both parties.<br />

A scoping study, in partnership with<br />

Primero, is already underway to identify<br />

the technologies, innovations and skills<br />

required to deliver a world-class lithium<br />

hydroxide plant within the Manitoba<br />

Province.<br />

Philip Gross, CEO Snow Lake Lithium said,<br />

“We are delighted to collaborate with<br />

world-leading LG Energy Solution to build<br />

a rock to road battery supply chain for the<br />

electric vehicle market in North America.<br />

Both Snow Lake Lithium and LG Energy<br />

Solution recognise the importance of local<br />

sourcing of critical raw materials, such as<br />

lithium, and that this is the logical step for<br />

battery and electric vehicle manufacturers.”<br />

“Our all-electric lithium mine in Snow Lake<br />

Manitoba will power 5 million electric<br />

vehicles over the next 10 years, helping to<br />

secure the future of the North American<br />

automobile market. We are grateful for<br />

the commitment of Prime Minister Justin<br />

Trudeau, Premier of Manitoba, Heather<br />

Stefanson and Invest Canada to support<br />

the development of a sustainable mining<br />

industry in Canada which has helped to<br />

facilitate our partnership with LG Energy<br />

Solution,” added Gross.<br />

Youngsoo Kwon, CEO of LG Energy Solution<br />

said, “As we have recently announced<br />

our mid- to long-term strategy to focus<br />

on North America, the fastest growing<br />

<strong>October</strong> <strong>2022</strong> 48


EV market, these partnerships serve as a<br />

crucial step towards securing a stable key<br />

raw material supply chain in the region. By<br />

constantly investing in upstream suppliers<br />

and establishing strategic partnerships with<br />

major suppliers of critical minerals, LGES<br />

will continue to ensure the steady delivery<br />

of our top-quality products, thereby further<br />

advancing the global transition to EVs and<br />

ultimately to a sustainable future.”<br />

Snow Lake & Manitoba’s rich mining<br />

heritage<br />

Based in Manitoba, Canada, Snow Lake<br />

Lithium is developing the world’s first allelectric<br />

lithium mine to enable domestic<br />

supply of this critical resource to the North<br />

American electric vehicle industry. Snow<br />

Lake Lithium is ideally located to serve<br />

the North American automotive industry<br />

with access to the US rail network via<br />

the Artic Gateway railway, which reduces<br />

transportation from thousands of miles by<br />

road and boat to just several hundred by<br />

train.<br />

The Manitoba region has a rich history of<br />

mining giving Snow Lake Lithium access to<br />

some of the most talented and experienced<br />

miners in North America.<br />

“At a time of global energy insecurity,<br />

Manitoba is uniquely positioned to supply<br />

the critical minerals and materials the<br />

world needs to pursue decarbonisation,”<br />

said Heather Stefanson, Premier of<br />

Manitoba.<br />

“We are thrilled to see this partnership<br />

move forward between Snow Lake Lithium<br />

and LG Energy Solution to advance<br />

Manitoba’s leadership position in the<br />

North American electric vehicle supply<br />

chain. This collaboration is a testament<br />

to the execution of our government’s<br />

strategy to attract investment, and the<br />

new technologies that will help create a<br />

stronger, growing economy for Manitoba<br />

and Canada,” Stefanson stated.<br />

Snow Lake Lithium’s 55,000-acre site is<br />

expected to produce 160,000 tonnes of 6%<br />

lithium spodumene a year over a 10-year<br />

period, enough to power 5 million electric<br />

vehicles. Currently, Snow Lake Lithium has<br />

explored approximately 1% of its site and<br />

is confident that further exploration will<br />

increase estimates over the course of the<br />

next year. Snow Lake Lithium’s planned<br />

mine will be operated by almost 100%<br />

renewable hydroelectric power to ensure<br />

the most sustainable lithium manufacturing<br />

approach.<br />

Over the coming months, Snow Lake<br />

Lithium will continue its engineering<br />

evaluation and drilling programme across<br />

its site, with the expectation that mining<br />

operations, will transition to commercial<br />

production targeted for 2025.<br />

Canada – a global mining powerhouse<br />

With its rich minerals and metals sector<br />

ecosystem, Canada is globally recognised<br />

as a world-leader in the mining industry.<br />

Its commitment to producing minerals<br />

in the right way, both protecting the<br />

environment and ensuring local,<br />

indigenous communities’ benefit, is<br />

unparalleled. Canada is a natural location<br />

for investment in critical minerals which<br />

are essential to renewable energy, clean<br />

technology and advanced manufacturing<br />

supply chains. Canada is the only country<br />

in the Western Hemisphere that has all the<br />

critical minerals required for EV batteries,<br />

including lithium. By 2025, Canada is<br />

expected to rank third in the global<br />

production of the raw materials needed for<br />

electric vehicle batteries.<br />

<strong>October</strong><br />

<strong>2022</strong><br />

50


6 months, 6K kilometers:<br />

Türkiye caps car sales to<br />

curb prices<br />

Türkiye is preparing to unveil a new<br />

regulation that will be aimed at reining<br />

in the surge in prices of new cars, the<br />

country’s trade minister announced.<br />

Prices of vehicles in Türkiye have been<br />

soaring due to persistent supply shortages<br />

of components, supply shortfall coupled<br />

with strong demand, and the depreciation<br />

in the Turkish lira, which makes imports<br />

more expensive.<br />

Companies, car showrooms and car rental<br />

companies will now have to keep the cars<br />

they acquire for six months and cover at<br />

least 6,000 kilometers before being allowed<br />

to sell them, Trade Minister Mehmet Muş<br />

told the third Turkey Export Mobilization<br />

summit.<br />

The event was organized by Türkiye’s<br />

leading media group and Daily Sabah’s<br />

parent company, Turkuvaz Media, in the<br />

central province of Kayseri.<br />

Inflation, high loan rates, supply chain<br />

bottlenecks and an ongoing chip shortage<br />

are just a few of the problems that have<br />

been plaguing the auto industry.<br />

Both consumers and the government have<br />

blamed car sellers for price gouging. The<br />

government ramped its audits to curb the<br />

prices and make vehicles more reachable.<br />

“After the first registration, companies,<br />

dealerships, car rental companies will<br />

not be able to sell the new vehicles they<br />

bought for six months and 6,000 kilometers<br />

(3728 miles),” Muş said.<br />

The minister said the country’s competition<br />

watchdog was engaged in more detailed<br />

inspections, looking at whether there has<br />

been market manipulation or common<br />

price setting among companies.<br />

Sales of passenger cars and light<br />

commercial vehicles in Türkiye jumped<br />

9.1% year-over-year in July to 52,206 units,<br />

according to the data from the <strong>Automotive</strong><br />

Distributors Association (ODD). The<br />

January-July sales were down by 7.3% to<br />

410,110 vehicles, the data showed.<br />

Sales fell 4.6% year-on-year in 2021 to<br />

737,359 vehicles, according to the ODD. It<br />

followed a 61.3% year-over-year increase in<br />

2020 to 772,788 units, despite the fallout<br />

of the coronavirus pandemic.<br />

<strong>October</strong> <strong>2022</strong> 54


Öz-İş expands its export targets<br />

Öz-İş company, which has a wide product<br />

portfolio, has gained a very successful<br />

momentum in the production of<br />

automotive interior spare parts, especially<br />

door panels. Mustafa Öz, General Manager<br />

of Öz-İş brand, which has an ambitious<br />

product range, talked about his company’s<br />

future plans and export activities to<br />

<strong>Automotive</strong> <strong>Exports</strong> magazine.<br />

You have been in the automotive industry<br />

since 1969. Can you tell us about the story<br />

of your brand?<br />

Our company was founded by İlhan Öz in<br />

1969 as a family company. As the second<br />

generation, we expanded the domestic and<br />

international activities of the company.<br />

Can you tell us about your fields of<br />

activity?<br />

Our product ranges are automotive<br />

interior spare parts such as door panels,<br />

dashboard, sunvisors, seat covers,<br />

headliner, floor carpets, trunk carpets,<br />

fabrics and upholstery products. Our main<br />

activity area is automotive interior spare<br />

parts.<br />

How do you work differently from<br />

your competitors to increase customer<br />

satisfaction?<br />

Our customers voice is important for<br />

us. We carefully listen their feedbacks<br />

and take action on product research and<br />

improvement.<br />

Do you have<br />

different goals in<br />

your industry in the<br />

coming years?<br />

Our goal is 100 percent<br />

customer satisfaction<br />

on before and after<br />

sales. Our target is to<br />

grow up 20 percent<br />

every upcoming year<br />

as financially and<br />

production.<br />

How are you affected by the<br />

increasing export activities in the<br />

automotive sector? Does this<br />

momentum gained in recent years<br />

reflect on your exports? What are the<br />

regions you export to?<br />

More than 25 European countries and<br />

United States are our main export markets.<br />

Especially high raw materials costs, our<br />

research and production team started to<br />

work on it to make lower raw material<br />

costs. Interior body components that<br />

we are currently focused to improve our<br />

product range.<br />

<strong>October</strong> <strong>2022</strong> 56


Turkish auto<br />

production up<br />

5% this<br />

January-July<br />

Türkiye’s automotive production this<br />

January-July rose 5% compared to the<br />

same period last year, according to a report<br />

released by the country’s <strong>Automotive</strong><br />

Manufacturers Association (OSD).<br />

A total of 742,969 vehicles in the first seven<br />

months were manufactured, including<br />

automobiles and commercial vehicles,<br />

according to the new data.<br />

During this period, the auto industry’s<br />

capacity utilization rate was 66%.<br />

Broken down by vehicle group, the capacity<br />

utilization rates were 66% in light vehicles<br />

(cars + light commercial vehicles), 84% in<br />

the truck group, 33% in the bus-midibus<br />

group, and 62% in tractors.<br />

In January-July, total commercial vehicle<br />

production reached 308,779 units.<br />

The commercial vehicle market contracted<br />

by 3% and the light commercial vehicle<br />

market shrank by 5%, while the heavy<br />

commercial vehicle market grew 8% this<br />

January-July compared to the same period<br />

last year.<br />

Meanwhile, the total production of the<br />

sector in July was 93,659, the OSD data<br />

showed.<br />

Thus, for the first time after January, the<br />

total production of the sector reduced<br />

below 100,000 units.<br />

Although the automotive sector production<br />

performed well in July compared to the<br />

previous year, it fell behind the levels<br />

recorded this year.<br />

Automobile production remained at the<br />

level of 51,243. Automobile production<br />

also recorded the lowest performance<br />

since January.<br />

Compared to the previous year, the<br />

total automotive production was 37.4%<br />

automobile production increased by 41.5%.<br />

In July, the total market increased by 11.2%<br />

year-over-year to 55,324.<br />

The exports of the sector increased by<br />

16.2% annually to 59,596 units, while<br />

automobile exports increased by 4% to<br />

27,279 units.<br />

<strong>October</strong> <strong>2022</strong> 58


GM spending<br />

$760M to<br />

convert Toledo<br />

factory to make<br />

EV parts<br />

General Motors says it will spend $760<br />

million to renovate its transmission<br />

factory in Toledo, Ohio, so it can build<br />

drive lines for electric vehicles.<br />

It’s the first GM engine or transmission<br />

plant to begin the long transition from<br />

internal combustion engines to electric<br />

vehicles. The company has a goal of<br />

making only electric passenger vehicles<br />

by 2035. The move will keep the jobs of<br />

about 1,500 hourly and salaried workers<br />

at the Toledo plant, which now makes<br />

four transmissions used in pickup trucks<br />

and many other GM internal combustion<br />

vehicles. No new hiring is expected.<br />

Electric drive lines take power from the<br />

batteries and convert it to motion at the<br />

wheels.<br />

The 2.8 million-square-foot Toledo<br />

plant, built in 1956, will make drive lines<br />

for future electric trucks including the<br />

Chevrolet Silverado and GMC Sierra<br />

pickups, along with GMC Hummer EVs.<br />

The announcement at the plant is good<br />

news for the workers in Toledo, who have<br />

worried about the future of their plant.<br />

GM employs about 10,000 workers at<br />

engine and transmission factories across<br />

the U.S., and their futures are uncertain<br />

as the switch to electric vehicles picks<br />

up momentum. GM says the factory<br />

will continue to make transmissions<br />

for internal combustion vehicles, as it<br />

gradually switches to electric drive lines.<br />

Work on the renovation will start this<br />

month, with EV component production<br />

beginning early in 2024, Johnson said.<br />

GM CEO Mary Barra has pledged to<br />

unseat Tesla as the top seller of EVs by the<br />

middle of this decad.<br />

<strong>October</strong> <strong>2022</strong> 60


Ford to slash 3,000 jobs to lower<br />

costs as it pivots to EVs, software<br />

Ford Motor Co. is cutting around 3,000<br />

salaried and contract jobs as it attempts to<br />

lower costs and make the transition from<br />

internal combustion to electric vehicles.<br />

Leaders of the Dearborn, Michigan,<br />

automaker made the announcement in a<br />

companywide email, saying that 2,000 fulltime<br />

salaried workers would be let go along<br />

with another 1,000 contract workers.<br />

The cuts represent about 6% of the 31,000<br />

full-time salaried workforce in the U.S.<br />

and Canada. Ford’s 56,000 union factory<br />

workers are not affected. Some workers<br />

also will lose jobs in India.<br />

Executive Chairperson Bill Ford and CEO<br />

Jim Farley said in the email that Ford will<br />

provide benefits and significant help for the<br />

workers to find new jobs.<br />

They wrote that Ford has a chance to lead<br />

in the new era of connected and electric<br />

vehicles.<br />

“Building on this future requires changing<br />

and reshaping virtually all aspects of the<br />

way we have operated for more than<br />

a century,” the email said. “It means<br />

redeploying resources and addressing our<br />

cost structure, which is uncompetitive<br />

versus traditional and new companies.”<br />

Farley and Ford wrote that they examined<br />

each team’s shifting work to decide<br />

where cuts would be made. The company<br />

determined that its cost structure wasn’t<br />

competitive with General Motors, Stellantis<br />

and Tesla. It has said previously that it<br />

has a target of cutting $3 billion in annual<br />

internal combustion vehicle structural<br />

costs.<br />

“We are eliminating work, as well as<br />

reorganizing and simplifying functions<br />

throughout the business,” they wrote in<br />

the email. A spokesperson said the cuts<br />

were made across all areas of the company,<br />

including cuts in the large work force of<br />

internal combustion engineers.<br />

The company already has restructured in<br />

Europe, Asia and India.<br />

Farley has said repeatedly that the<br />

company has too many people and needs<br />

to trim costs so it can move faster as it<br />

transitions to electric vehicles.<br />

On the company’s earnings conference<br />

call in July, Farley said the company is too<br />

complex its costs aren’t competitive. It also<br />

has too many employees in some areas.<br />

“We have skills that don’t work anymore,”<br />

he said. “We have jobs that need to<br />

change.”<br />

Like other established automakers, Ford<br />

has a workforce largely hired to support a<br />

traditional combustion technology product<br />

lineup. Going forward, Farley has mapped<br />

out a strategy for Ford to develop a broad<br />

lineup of electric vehicles. Like Tesla, Ford<br />

wants to generate more revenue through<br />

services that depend on digital software<br />

and connectivity. Farley has said has too<br />

many versions of its internal-combustion<br />

vehicles. It plans to produce more models<br />

off the same electric vehicle underpinnings,<br />

spending capital on areas that affect<br />

customers such as software, digital displays<br />

and automated driving systems, Farley said.<br />

Ford has realigned itself into three business<br />

units, one for electric vehicles, another<br />

for commercial vehicles and the last for<br />

internal-combustion vehicles.<br />

<strong>October</strong> <strong>2022</strong> 62


Nissan commits<br />

$17.6B spending<br />

for electric cars<br />

over 5 years<br />

Japanese carmaker Nissan will spend<br />

2 trillion yen ($17.59 billion) over the<br />

next five years to accelerate vehicle<br />

electrification, the company announced,<br />

aiming to catch up with rivals in one of the<br />

fastest growth areas for the automobile<br />

industry.<br />

This is the first time Japan’s No.3<br />

automaker, one of the world’s first massmarket<br />

electric vehicle (EV) makers with<br />

its Leaf model more than a decade ago, is<br />

unveiling a comprehensive electrification<br />

plan.<br />

Nissan will be spending twice as much as<br />

it did in the previous 10 years for a share<br />

of the EV market as rivals, including Toyota<br />

and newer entrants such as Tesla, move<br />

ahead with their electric-car plans.<br />

Nissan said it will introduce 23 electrified<br />

vehicles by 2030, including 15 electric<br />

vehicles and wants to reduce lithium-ion<br />

battery costs by 65% within eight years. It<br />

also plans to introduce potentially gamechanging<br />

all solid-state batteries by March<br />

2029.<br />

Those commitments, Chief Executive<br />

Makoto Uchida said, would make EVs<br />

affordable to more drivers.<br />

“We will advance our effort to<br />

democratize electrification,” he said in<br />

an online presentation. Some analysts<br />

were unimpressed with Nissan’s plan,<br />

noting it was already behind rivals in the<br />

electrification game.<br />

Masayuki Otani, senior analyst at Securities<br />

Japan Ltd, also said auto stocks were falling<br />

because of market concerns about a new<br />

coronavirus variant and the impact it could<br />

have on production plans.<br />

“Nissan’s long term vision comes at a time<br />

when the market is perhaps not receptive<br />

to it. It can be said that it represents a huge<br />

increase in investment, it feels cautious,”<br />

he said.<br />

Shares of Nissan fell as much as 5.1% ,<br />

underperforming its major rivals. They<br />

were down 3.8% in afternoon trading.<br />

Although still only a small portion of<br />

vehicles on the road, global electric car<br />

registrations in 2020 grew 41% even as the<br />

overall car market contracted by almost a<br />

sixth, according to the International Energy<br />

Agency (IEA).<br />

At the U.N. climate summit in Glasgow this<br />

month, major carmakers, including General<br />

Motors and Ford, signed a declaration that<br />

committed them to phase out fossil fuel<br />

vehicles by 2040. Nissan, however, has<br />

not committed to abandoning gasoline<br />

vehicles. It said half of its vehicles mix will<br />

be electrified by 2030, including EVs and its<br />

e-Power hybrids.<br />

As it readies to compete for the growing<br />

demand for EVs, Nissan in July pledged<br />

$1.4 billion with its Chinese partner<br />

Envision AESC to build a giant battery plant<br />

in Britain that will power 100,000 vehicles<br />

a year including a new crossover model.<br />

Rivals, including Toyota, which also<br />

declined to sign the Glasgow pledge, are<br />

also ramping up their battery production.<br />

The world’s biggest automaker by<br />

production volume plans to have 15<br />

battery electric vehicle (BEV) models<br />

globally by 2025 and will spend $13.5<br />

billion by 2030 to develop cheaper, more<br />

powerful EV batteries and their supply<br />

system.<br />

Toyota said it is aiming to introduce solidstate<br />

batteries by the mid-2020s.<br />

Those power packs are attractive to<br />

automakers because they are more energy<br />

dense and less prone to catching fire than<br />

liquid lithium-ion power packs. They are,<br />

however, prone to cracking and currently<br />

are more expensive to produce.<br />

Nissan said its goal is to bring the cost<br />

of solid-state batteries down to $75 per<br />

kilowatt-hour (kWh) in 2028 and further<br />

cut it to $65 per kWh in the future to make<br />

them competitive with gasoline vehicles.<br />

<strong>October</strong> <strong>2022</strong> 64


EQUIP AUTO-PARIS <strong>2022</strong>-Shaping<br />

the automotive future<br />

EQUIP AUTO PARIS powerfully asserts<br />

its ambition and stance: to be the<br />

international benchmark event within<br />

the EMEA zone for aftersales and services<br />

relating to connected mobility, by bringing<br />

together the various players in the value<br />

chain, extended to new market entrants.<br />

For the first time, the two flagship events<br />

of the automotive sector, the exhibition<br />

EQUIP AUTO and the Paris Motor Show<br />

(MONDIAL DE L’AUTO), one a tradeshow,<br />

the other a consumer event, come<br />

together under the same banner by<br />

initiating Paris <strong>Automotive</strong> Week, to be<br />

held at Porte de Versailles from 17 to 23<br />

<strong>October</strong> <strong>2022</strong>. The week of the automobile<br />

will revolve around a series of events,<br />

inspiring speaking opportunities and test<br />

drives. It will be a world premiere that<br />

brings together professionals and the<br />

general public, providing the automotive<br />

industry with the opportunity to share its<br />

vision for the future of automobiles and<br />

mobility with the French public, journalists<br />

and visitors from all over the world.<br />

EQUIP AUTO is a venue for information,<br />

sharing and listening. The show federates<br />

the automotive aftersales world in a<br />

convivial, enthusiastic and businessfriendlyatmosphere.<br />

It is an essential<br />

performance lever.<br />

Major challenges for EQUIP AUTO<br />

<strong>2022</strong>: CO2 reduction targets, planned<br />

conversion from ICE to electric energy and<br />

green transition. Electrification, vehicle<br />

connectivity, autonomy, industry 4.0,<br />

control over data, etc<br />

Special features for <strong>2022</strong> are:<br />

1. Circular economy: sustainable<br />

automotive (depollution, recycling, used<br />

parts and remanufacturing, eco-friendly<br />

garage, used vehicles) 2. Technological<br />

<strong>October</strong> <strong>2022</strong> 68


innovations: The garage of the future<br />

(Electronic maintenance, connected<br />

garage, mechanics and bodywork)<br />

3. Energy transition & Maintenance:<br />

Aftersales tomorrow (New powertrains:<br />

from OE to AM, retrofit, ethanol and<br />

synthetic fuels) 4. Training, Recruitment<br />

and Business Transmission Talks and special<br />

features will be happening throughout<br />

the 5 days of the show: 4 major European<br />

forums, theme-based talks and workshops,<br />

a demonstrator, the International Grands<br />

Prix for <strong>Automotive</strong> Innovation, and a gala<br />

evening. For 30 years, EQUIP AUTO has<br />

placed innovation at the centre of its<br />

priorities. Acknowledged as a prestigious<br />

accolade in many countries, these awards<br />

reflect an international dynamic around<br />

the know-how, skills and innovations of<br />

firms. Awarded by a panel of more than<br />

60 French and international journalists<br />

from 14 countries, the competition is<br />

open to all exhibitors. Special features<br />

for <strong>2022</strong> A common thread and 4<br />

major themes to assert the vocation<br />

of EQUIP AUTO, as the tradeshow for<br />

the downstream automotive sector A<br />

common thread and 4 major themes<br />

to assert the vocation of EQUIP AUTO,<br />

as the tradeshow for the downstream<br />

automotive sector The International<br />

Grands Prix for <strong>Automotive</strong> Innovation.<br />

EQUIP AUTO is widening its themes and<br />

potential to consolidate its vocation as<br />

an industry vertical tradeshow, with all<br />

the equipment, products and services for<br />

downstream market players (IAM, OES)<br />

with the technological innovations of the<br />

upstream.<br />

<strong>October</strong><br />

<strong>2022</strong><br />

70


Devran manufactures<br />

products and trains people<br />

Devran Engine Bearings and Bushings<br />

Industry produces the products that<br />

many brands need, and also trains<br />

useful people for the country by<br />

investing in the education sector.<br />

Devran Motor Bearings and Bushings<br />

Industry, which has been manufacturing<br />

quality products for the automotive<br />

sector for more than 50 years, produces<br />

spare parts for vehicles in many different<br />

segments, especially automobile, light<br />

commercial, truck, bus, heavy commercial,<br />

tractor, agricultural machinery. Pointing<br />

out that they supply spare parts to more<br />

than 100 countries, mainly in Europe, Asia<br />

and Africa, Murat Tetikli, the company<br />

representative, supplied information about<br />

the development process of the sector and<br />

their own brands.<br />

Could you briefly introduce your<br />

company? How do you provide services to<br />

the automotive aftermarket industry?<br />

Devran Engine Bearings and Bushings<br />

Industry was founded in 1967 by our<br />

grandfather Mustafa Tetikli. Our company,<br />

which was established to serve in the<br />

field of automotive spare parts, still<br />

continues its customer satisfactionoriented<br />

production activities on a total<br />

area of 26,000 square meters, of which<br />

20,000 square meters part is open and<br />

6,000 square meters part is closed. Our<br />

company, which continues its production in<br />

accordance with ISO 9001 and IATF 16949<br />

quality certificates with its experience<br />

and quality, has taken its place among<br />

the priority preferences of domestic and<br />

foreign main industry, assembly and subindustry<br />

companies.<br />

Devran and Wildcat branded products<br />

mainly addresses to companies that<br />

manufacture products such as automobiles,<br />

light commercials, trucks, buses, heavy<br />

commercials, tractors, agricultural<br />

machinery, construction equipment, ships,<br />

railway transport vehicles, generators,<br />

compressors, water and oil pumps, and<br />

supply spare parts. Our company offers fast<br />

solutions with its dynamic R&D structure in<br />

order to respond to developing technology,<br />

new vehicle types and changing customer<br />

demands.<br />

Which countries and regions do you<br />

export to?<br />

Along with exporting to Europe, Asia and<br />

Africa continents, we supply spare parts to<br />

more than 100 countries together with the<br />

<strong>October</strong> <strong>2022</strong> 72


spare parts wholesalers we cooperate with.<br />

Thanks to the expansion of the world’s<br />

transportation network and internet<br />

networks, we connect with every point in<br />

the world.<br />

Will you have new investments?<br />

The investments we have made on the<br />

basis of technology, capacity expansion,<br />

and knowledge-based information for the<br />

engineers we work with continue rapidly in<br />

an integrated manner. If you want to grow,<br />

the basic rule is to invest in your business.<br />

Investing in people in the first place always<br />

makes us stronger.<br />

We would also like to know about your<br />

activities outside the sector. What are<br />

those if you have any?<br />

Apart from his commercial activities,<br />

Mustafa Tetikli has also made serious<br />

investments in the education sector due to<br />

the value he gives to raising people. Devran<br />

College was opened in 1998, and every day<br />

it educates young talents for our country,<br />

open to development and innovation.<br />

Apart from this, we also have some<br />

investments in the construction sector. Our<br />

main idea is to be quality-oriented in every<br />

attempt we make.<br />

Can you evaluate the automotive<br />

industry? What is the position of the<br />

sector in the world? Where is Turkey in<br />

this regard?<br />

The development of countries around<br />

the world is evaluated by looking at their<br />

industries. The automotive sector also<br />

forms the backbone of the industry. We are<br />

a company that sees German technology<br />

as a guide. At the same time, we are a<br />

company that does not hesitate to share<br />

our own knowledge and experience. Our<br />

country is currently in competition with<br />

Italy in the supply of spare parts. It is<br />

possible to foresee that it will leave many<br />

European countries behind in the next<br />

50 years. When we look at it in a regional<br />

and global sense, our country’s location<br />

at the center of the world, the ease of<br />

transportation network, the political<br />

distance between the east and the west in<br />

the recent period, made us a bridge. Our<br />

aim is to reach an even higher levels with<br />

a management style that always and fully<br />

support domestic production by turning<br />

this into an advantage.<br />

Is there anything that you would like to<br />

add and underline?<br />

We continue on our way under the<br />

leadership of Cevdet Tetikli. As the 3rd<br />

generation, we continue to work with<br />

enthusiasm. As all employees, we are<br />

happy to contribute to both the defense<br />

industry and the spare parts sector in order<br />

to move domestic production forward<br />

in accordance with the slogan of Cevdet<br />

Tetikli, “We are local, we are national and<br />

we are of high quality”. I would like to say<br />

that while we fully support our country’s<br />

recent initiatives in the automotive sector<br />

(TOGG), we are ready to provide all kinds<br />

of support if necessary. Our main goal is to<br />

be a productive person as a family. Quality<br />

is never accidental. It is always the result<br />

of smart efforts. The person who loves his<br />

country the most is the person who does<br />

his job best.<br />

<strong>October</strong><br />

73 <strong>2022</strong>


Standard Motor Products continues<br />

growth of Ignition Coil Program<br />

Standard Motor Products, Inc. (SMP)<br />

continues to add to its aftermarket-leading<br />

Ignition Coil program, which includes more<br />

than 800 Coils providing 99% coverage for<br />

import and domestic vehicles. Each Coil<br />

is designed to deliver improved durability<br />

and a longer service life. When the OE<br />

fails, technicians trust Standard® and Blue<br />

Streak® to deliver a Coil that will last.<br />

Standard’s Ignition Coil Program features<br />

a variety of coil types to fit many<br />

applications, including Coil on Plug,<br />

Electronic, Pencil, Cassette, Import,<br />

Blue Streak® Heavier-Duty, and Blue<br />

Streak® Direct Ignition Coil Kits. The<br />

Coils are expertly designed, engineered,<br />

and manufactured at SMP’s IATF<br />

16949-certified Poland facility. Each one<br />

then undergoes rigorous examination and<br />

product validation, including extensive<br />

measurement and life testing, a full range<br />

of environmental analysis that includes<br />

thermal shocks, thermal cycling, and<br />

vibration tests to ensure 100% product<br />

reliability.<br />

New Standard® and Standard® Import<br />

Coil on Plug units are now available for<br />

many popular vehicles, including the<br />

2021-20 Hyundai Sonata, 2021-20 Ford<br />

Escape, <strong>2022</strong>-20 Subaru Outback, <strong>2022</strong>-<br />

21 Chevrolet Trailblazer, and 2021-19<br />

Porsche Cayenne. Electronic Ignition<br />

Coils have been added for many General<br />

Motors vehicles through the 2021 modelyear,<br />

including the Cadillac CT4, CT6,<br />

and XT4. New applications also include<br />

the 2021-20 GMC Sierra and 2020-19<br />

Chevrolet Silverado.<br />

Additionally, Blue Streak® Direct Ignition<br />

Coil Kits have been introduced for a<br />

wide array gasoline and hybrid vehicles.<br />

These Kits include a full set of heavierduty<br />

units providing technicians exactly<br />

what they need for a complete coil<br />

service. Blue Streak® Heavier-Duty Coils<br />

are engineered to address OE flaws,<br />

with improvements and upgrades<br />

that continue to elevate Blue Streak®<br />

products above the competition. Over<br />

5.7 million Toyota and Lexus vehicles and<br />

nearly 8 million Ford vehicles will benefit<br />

from the introduction, as well as other<br />

popular applications including the 2017-<br />

09 Volkswagen Tiguan and 2018-15 Audi<br />

Q3. In addition, Standard® is committed<br />

to offering Coils for the growing hybrid<br />

market. Recent releases demonstrate<br />

this commitment, adding coverage for<br />

hybrid vehicles like the 2012-2010 Lexus<br />

HS250h.<br />

<strong>October</strong> <strong>2022</strong> 74


Lamborghini has already sold all its cars until 2024<br />

Italian sports car maker Lamborghini has<br />

already pre-sold the entire production run<br />

to early 2024, its boss has said, with luxury<br />

goods seemingly unaffected by global<br />

economic uncertainty. Wealthy customers<br />

are flocking to the brand despite the global<br />

financial fallout from Russia’s invasion of<br />

Ukraine.<br />

“We have more and more stepping into<br />

Lamborghini. Because they trust the brand,<br />

they see how beautiful the cars are, how<br />

(high) performing they are,” Winkelmann<br />

said. The global economy only has to “stay<br />

a bit stable” for that to continue, he added.<br />

The long order times are also the result<br />

of a shortage of components, particularly<br />

chips needed for new electric models.<br />

Lamborghini is planning a hybrid version<br />

of each of its models by 2024 and the first<br />

fully electric Lamborghini in the second<br />

half of the decade.<br />

Lamborghini in early August reported the<br />

best half-year in its history with record<br />

sales and profits. The carmaker’s operating<br />

margin reached 32 percent, while<br />

operating profit jumped to 425 million<br />

euros on 5,090 cars sold.<br />

Fellow luxury carmaker Ferrari also posted<br />

record results in the second quarter and<br />

raised its annual forecast, with orders at<br />

record levels.<br />

In late July, the world’s top luxury<br />

consumer goods group LVMH also reported<br />

a jump in sales and profits in the first half<br />

of the year despite the uncertain economic<br />

environment.<br />

<strong>October</strong> <strong>2022</strong> 76


Turkish Central<br />

Bank takes<br />

steps for credit<br />

availability,<br />

financial stability<br />

The Central Bank of the Republic of Türkiye<br />

(CBRT) announced new macroprudential<br />

measures to address loan growth and the<br />

interest rates applied in commercial loans,<br />

facilitating the real sector’s availability of<br />

loans. The move aims to support financial<br />

stability and strengthen the monetary<br />

transmission mechanism, the bank said in a<br />

statement, citing the recent increase in the<br />

spread between its policy rate and the loan<br />

interest rate. Accordingly, the lenders will<br />

have to maintain treasury bonds depending<br />

on the coefficient on the interest rates in<br />

the commercial loans they will give.<br />

“The reserve requirement maintenance<br />

being applied at a ratio of 20% will be<br />

replaced by maintenance of securities at<br />

30% for banks to enhance the efficiency of<br />

the practice,” it said.<br />

“For commercial loans, 20% of the loan<br />

amount to be extended at an annual<br />

compound interest rate 1.4 times higher<br />

than the CBRT-released annual compound<br />

reference rate,” read the statement.<br />

If the loan interest rate is 1.8 times or more<br />

than the reference rate, the facility rate<br />

will be applied as 90%, it said. The bank<br />

unexpectedly lowered its interest rate by<br />

100 basis points to 13% from 14%.<br />

The CBRT delivered a series of cuts last<br />

year, slashing rates by 5 percentage points<br />

before pausing the easing cycle in January.<br />

In a statement accompanying the latest<br />

decision, the bank said the cut was aimed<br />

at driving economic growth and sustaining<br />

employment amid growing geopolitical risk.<br />

It added that rising loan rates have<br />

diminished the effectiveness of the<br />

monetary policy. Head of the Ankara<br />

Chamber of Commerce (ATO) Gürsel Baran<br />

said that with the measures taken by the<br />

central bank following the interest rate cut,<br />

the commercial loan interest rates were<br />

limited to not exceed 30%.<br />

“The decisions taken by our central bank<br />

and the measures it has published are<br />

indications that the voice of the real<br />

sector is heard,” he said, noting that these<br />

measures are welcomed by ATO members.<br />

He pointed out that the interest rates<br />

applied to commercial loans exceeding 45%<br />

and the inability to access credits limited<br />

the mobility of the real sector.<br />

“In this period when the global economy<br />

is dealing with many risks, new investment<br />

and production opportunities are emerging<br />

for our real sector,” Baran went on to<br />

say, noting that the business world needs<br />

support in order to make use of these<br />

opportunities.<br />

“With these measures, commercial interest<br />

rates are aligned with the policy rate of the<br />

central bank,” he said, and thus, the policy<br />

envisaging rise in investment, production,<br />

employment and exports is supported.<br />

<strong>October</strong> <strong>2022</strong> 80


Turkish economy grew 7.6<br />

percent in second quarter<br />

The GDP growth accelerated from 7.3<br />

percent in the first quarter of <strong>2022</strong> to 7.6<br />

percent in the April-June period, data from<br />

the Turkish Statistical Institute (TÜİK) have<br />

showed.<br />

On a seasonally and calendar adjusted<br />

basis, the economy grew 2.1 percent in the<br />

second quarter from January-March, up<br />

from the quarterly growth of 0.7 percent<br />

recorded in the previous quarter.<br />

“We did not only achieve a robust growth<br />

performance in the second quarter growth<br />

but also the balanced growth continued<br />

for the fifth quarter in a row,” said Treasury<br />

and Finance Minister Nureddin Nebati,<br />

hailing the latest GDP data.<br />

He noted that the 7.6 percent is the<br />

second highest among all OECD and G-20<br />

economies which released their second<br />

quarter data.<br />

“The gains made based on the Türkiye<br />

Economic Model, which prioritizes growth<br />

and employment and supports production<br />

and exports will continue for the remainder<br />

of the year. The trademark of our economy<br />

is now sustainable and employmentfocused<br />

growth,” Nebati wrote on Twitter.<br />

The strong annual growth in machinery and<br />

equipment investments over the past two<br />

and a half years continued in the second<br />

quarter, rising 17.8 percent, the minister<br />

stressed. “We welcome this as it means the<br />

expansion of our production capacity,” he<br />

said.<br />

According to data from TÜİK, the industry<br />

sector grew by 7.8 percent year-on-year,<br />

easing from the 8.2 percent growth in the<br />

first quarter with manufacturing output<br />

growing 9.1 percent, up from 8 percent.<br />

The services sector, which grew 15.4<br />

percent in the first quarter, expanded 18.1<br />

percent in April-June, while real estate<br />

activities rose 4.1 percent in the second<br />

quarter, accelerating from the 3.8 percent<br />

expansion in January-March.<br />

The contraction in agriculture deepened<br />

in the second quarter with the decline in<br />

the sector’s output quickening from 1.5<br />

percent in the first quarter to 2.9 percent in<br />

the second quarter. The construction sector<br />

also contracted by 10.9 percent year-onyear,<br />

which came on top of the 7.7 percent<br />

drop in the industry’s output in the first<br />

quarter.<br />

The financial and insurance sector grew by<br />

26.6 percent after expanding 25.7 percent.<br />

Households’ final consumption increased<br />

by 22.5 percent in the second quarter,<br />

gathering pace from the 21.5 percent rise<br />

in the first quarter. The share of household<br />

consumption in the GDP, however, declined<br />

from 58.5 percent in the first quarter to<br />

57.4 percent.<br />

Government final expenditures, which rose<br />

by 3.1 percent year-on-year in the January-<br />

March period, grew by 2.3 percent in the<br />

second quarter.<br />

The growth in gross fixed capital formation<br />

accelerated from 4.2 percent to 4.7<br />

percent.<br />

The country’s export of goods and services<br />

increased by 16.4 percent, up from 14.8<br />

percent in the first quarter, while imports,<br />

which were up 2.2 percent, rose by 5.8<br />

percent, TÜİK said.<br />

At current prices, The GDP reached 3.4<br />

trillion Turkish Liras or $219 billion in the<br />

second quarter of <strong>2022</strong>.<br />

The share of compensation of employees in<br />

gross value added fell from 31.2 percent in<br />

the second quarter to 25.4 percent, while<br />

the share of net operating surplus/mixed<br />

income increased from 47.6 percent to 54<br />

percent.<br />

<strong>October</strong> <strong>2022</strong> 82


Everrati<br />

launches<br />

Everrati<br />

advanced<br />

technologies<br />

Everrati Advanced Technologies (“EAT”)<br />

draws upon Everrati’s unique combination<br />

of engineering experience; amassed<br />

from more than 50 years of collective<br />

expertise working within automotive<br />

OEMs. Utilising proven Everrati automotive<br />

EV propulsion system platforms as a<br />

starting point, EAT provides consultation<br />

on a suite of electrification solutions for<br />

commercial clients, from initial concept,<br />

analysis services and feasibility study to<br />

complete turnkey EV powertrain provision.<br />

In addition, EAT will provide software and<br />

IP development for bespoke customer<br />

requirements.<br />

Initially focused on the low-volume<br />

specialist and luxury vehicle sector, EAT will<br />

provide design, development, engineering,<br />

and production consultancy services,<br />

enabling customers to create almost any<br />

bespoke EV powertrain solution they<br />

desire. Whether a redefined version of an<br />

existing vehicle or an entirely new electric<br />

propulsion system application.<br />

Over the last three years, Everrati has<br />

developed sector-leading technology,<br />

designing, and developing a range of<br />

class-leading EV platforms for its portfolio<br />

of redefined automotive icons. This highly<br />

flexible propulsion system enables the<br />

powertrain to be mounted in the front,<br />

middle or rear of the vehicle, with drive<br />

sent to any combination of wheels.<br />

Everrati’s OEM-derived product delivery<br />

process and approach to development and<br />

testing can be applied to almost any type of<br />

vehicle, it allows EAT’s customers to create<br />

almost any configuration of luxury EV and<br />

accelerate delivery times<br />

EAT applies Everrati’s own industrystandard<br />

and proven product delivery<br />

model to seamlessly match customer<br />

requirements and delivery processes.<br />

Experience in delivery to multiple global<br />

territories allows EAT to work with<br />

customers to ensure their product complies<br />

with local market regulatory & legislative<br />

standards. EAT also expects to achieve ISO<br />

9001 and ISO 14001 accreditation in 2023.<br />

Sector-leading technology and quality<br />

expertise is further backed up by Everrati’s<br />

<strong>October</strong> <strong>2022</strong> 84


proven integration and applications<br />

experience of DC fast charging, battery<br />

design and packaging, functional safety,<br />

vehicle systems integration and user<br />

interface development.<br />

Finally, the company has developed<br />

strategic partnerships with leading Tier<br />

1 suppliers, across battery, inverter and<br />

e-motor technologies, with EAT bringing<br />

together the very best in EV components,<br />

alongside Everrati’s own innovations, under<br />

one roof.<br />

The division will support increasing<br />

demand for consultancy services and<br />

electrification solutions from other luxury<br />

sectors including marine and aerospace.<br />

Everrati’s flagship model, the upcoming<br />

GT40, represents the pinnacle of redefined<br />

performance EV icons. Featuring 800bhp<br />

Helix e-motors, a 700-volt architecture,<br />

plus high power density batteries and<br />

class leading discharge rates with 150kW<br />

charging capability; the GT40 brings OEM<br />

levels of technology and performance to<br />

the sector that EAT customers will now be<br />

able to draw on for their own projects.<br />

Everrati also announces further<br />

strengthening of its senior team with<br />

Ian Fenton joining as a member of the<br />

Advisory Board to develop its international<br />

footprint. Bringing 30 years of international<br />

experience in the motor industry, Ian has<br />

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

Ford Motor China, Mazda JV, Jaguar Land<br />

Rover, Aston Martin Lagonda Plc and Aston<br />

Martin Works Ltd.<br />

Everrati Founder and CEO, Justin Lunny,<br />

said: “We are delighted to launch Everrati<br />

Advanced Technologies – a new division of<br />

Everrati dedicated to specialist and luxury<br />

low volume electric vehicle design and<br />

manufacture for third party customers.<br />

“Everrati’s reputation is built on our<br />

own OEM-grade proprietary EV platform<br />

technology combined with the skills<br />

of our team – many of whom have<br />

held senior engineering positions at<br />

leading automotive brands. This unique<br />

combination has quickly driven global<br />

demand for our products, which set new<br />

standards in the sector. We are now<br />

delighted to offer the same levels of<br />

expertise to specialist and luxury vehicle<br />

brands to support our commercial clients’<br />

electric ambitions.<br />

“These customers range from start-ups to<br />

established brands, and all share similar<br />

needs: the very latest in cutting-edge,<br />

OEM-grade, flexible electrification solutions<br />

that will enable them to go zero-emission<br />

without delay. It is critical that every brand<br />

moves to EVs to meet incoming emissions<br />

rules globally. With the support of Everrati’s<br />

engineering and development skills, allied<br />

to our proprietary EV platform technology<br />

and strategic partnerships with leading<br />

Tier 1 component manufacturers, Everrati<br />

Advanced Technologies will provide<br />

specialist and luxury vehicle customers<br />

with any level of electrification support,<br />

from concept to complete turnkey vehicle<br />

solution.<br />

“I am also honoured to welcome Ian<br />

Fenton to our senior team. Ian’s highly<br />

relevant and deep experience, gleaned<br />

from many director positions with leading<br />

OEMs, will be invaluable to both Everrati<br />

and Everrati Advanced Technologies,<br />

further strengthening our offering to all<br />

customers.”<br />

With multiple projects already in place with<br />

start-ups and established luxury brands,<br />

Everrati Advanced Technologies has already<br />

begun development work on a number of<br />

customer electrification projects, details<br />

of which will be announced in the coming<br />

months.<br />

<strong>October</strong><br />

<strong>2022</strong><br />

86


Businesses<br />

should not<br />

worry about<br />

sanctions<br />

Businesses in Türkiye should not be<br />

concerned by the threat of sanctions,<br />

Treasury and Finance Minister Nureddin<br />

Nebati said on Aug. 26.<br />

“The letter should not cause concern in<br />

our business circles. Türkiye is one of the<br />

most important political and economic<br />

power centers in the world,” Nebati wrote<br />

on Twitter, referring to the letter the U.S.<br />

Treasury issued to warn against violating<br />

the sanctions imposed on Russia.<br />

It is important for Türkiye to cooperate and<br />

work together with its allies against the<br />

global and regional challenges, he added.<br />

“We are also determined to develop<br />

commercial relations with our neighbors<br />

in various sectors – especially tourism –<br />

within a framework that is not subject to<br />

sanctions... We are pleased to see that the<br />

United States, our ally and trade partner,<br />

is inviting its businesses to invest in our<br />

economy,” Nebati said.<br />

All actors in the Turkish economy are<br />

committed to principles of free market and<br />

try to have a larger share in global trade,<br />

the minister said.<br />

The Turkish Industry and Business<br />

Association (TÜSİAD), on Aug. 23,<br />

confirmed that it received a letter from U.S.<br />

Treasury Deputy Secretary Wally Adeyemo<br />

cautioning that Turkish companies risked<br />

consequences if they did business with<br />

Russians or Russian institutions that were<br />

under U.S. sanctions.<br />

Türkiye will not allow any person or<br />

institution to violate sanctions imposed<br />

on Russia over the invasion of Ukraine,<br />

a senior Turkish official told his United<br />

States counterpart. Deputy Treasury and<br />

Finance Minister Yunus Elitaş spoke on the<br />

phone with U.S. Deputy Treasury Secretary<br />

Wally Adeyemo on the implementation of<br />

sanctions against Russia. Elitaş underlined<br />

the fact that Türkiye has deep economic<br />

and political ties with both Ukraine and<br />

Russia, saying Ankara’s stance on the<br />

sanctions has not changed, meaning it<br />

won’t join unilateral sanctions. But he<br />

also assured his counterpart that the<br />

government would not allow any person or<br />

institution to violate sanctions on Russia.<br />

Türkiye to launch new buses powered<br />

by indigenous charging system<br />

Anew domestically developed electric bus<br />

is due to hit the roads in Türkiye’s Samsun<br />

province, the latest in the efforts to curb<br />

carbon emissions and achieve savings.<br />

Manufactured jointly by prominent<br />

electronics company Aselsan and TEMSAN,<br />

an electromechanical firm affiliated with<br />

the Energy and Natural Resources Ministry,<br />

the vehicles will transport their first<br />

passengers during a major upcoming event<br />

in the northern city. Charged in as little as<br />

15 minutes, the buses will run on lithium<br />

batteries with Türkiye’s first domestic ultracharging<br />

system. They will be responsible<br />

for the transportation of visitors on the<br />

sidelines of Teknofest, Türkiye’s largest<br />

aerospace and technology event, set to be<br />

held in Samsun from Aug. 30 through Sept.<br />

4. The Black Sea province is known for its<br />

congested traffic. Samsun Municipality<br />

Mayor Mustafa Demir says the city is<br />

among provinces where public transport<br />

proves to be crucial.<br />

“Although we built the rail system,<br />

we could not provide the necessary<br />

comfort in the city, especially in public<br />

transportation. The rail system currently<br />

operates on a single line. So our trams<br />

are running at full capacity. We cannot<br />

increase the number of trams,” Demir<br />

said.<br />

“We are thus putting forth electric buses<br />

in accordance with the transportation<br />

master plan we prepared.”<br />

“For the first time in Turkey, electric<br />

buses that run on lithium batteries with<br />

a domestic ultra-charging system will be<br />

used in Samsun. The test drives have been<br />

completed, and we are commissioning<br />

them together with Teknofest,” the mayor<br />

added.<br />

The vehicle can travel 80 kilometers (50<br />

miles) with a 15-minute charge.<br />

“We could have had it going 300-400<br />

kilometers by changing the battery<br />

system, but when we made a cost<br />

calculation, we decided that these buses<br />

are the most optimal,” said Demir.<br />

<strong>October</strong> <strong>2022</strong> 88


Turkish auto industry seeks new<br />

markets to curb Europe sales drop<br />

Turkey’s automotive industry, which makes<br />

some 80% of its exports to Europe, is now<br />

in search of alternative markets as sales to<br />

the region begin to drop and are projected<br />

to decrease even more.<br />

The semiconductor crisis and the supply<br />

problems have been continuing to<br />

negatively impact the car industry. A loss<br />

of 2.6 million units was seen in global<br />

production in the first six months of the<br />

year.<br />

Meanwhile, the loss is expected to reach<br />

3.5 million units towards the end of the<br />

year.<br />

The rise in raw material prices as well<br />

as the record high inflation has been<br />

worsening the impact of already existing<br />

problems in the sector’s sales.<br />

The global auto sales estimations for <strong>2022</strong><br />

were reduced to 84.3 million units from<br />

89.3 million units. The sales in Europe are<br />

showing a particular downward trend as<br />

the European consumer is postponing<br />

demand for cars due to the rising inflation.<br />

Turkey’s automotive sales to major<br />

markets, namely Germany, the United<br />

Kingdom, France, Italy and Spain dropped<br />

between 11% to 20%.<br />

The sales estimations for the European<br />

market, which was 14 million units before,<br />

have revised to 12.2 million units.<br />

<strong>Automotive</strong> Industry Association (OSD)<br />

head Cengiz Eroldu, who said that it is<br />

necessary to diversify export markets, said:<br />

“While there was a 13% contraction in<br />

demand in Europe in the first six months,<br />

it was 15.4% in June. In addition, inflation<br />

in Europe continues to increase. There<br />

is also the uneasiness brought about by<br />

the Russia-Ukraine war. Expectations of<br />

interest rate hikes are among the issues<br />

that will reduce demand.”<br />

He said that there is a possibility that the<br />

demand in Europe will go down even more.<br />

“That’s why we need to go for new market<br />

diversifications.”<br />

Eroldu also touched upon the “Distance<br />

Countries Strategy” program announced<br />

by the Trade Ministry and said, “Critical<br />

free trade agreements (FTA) should be<br />

accelerated. Supportive policies should be<br />

implemented to enter new markets.”<br />

Eroldu added that the domestic market<br />

can also be used effectively against the<br />

contraction in exports.<br />

The Trade Ministry announced that the<br />

FTAs of Lebanon, Sudan and Qatar will<br />

enter into force after the completion of the<br />

internal approval processes. While Georgia<br />

and Malaysia agreements are about to be<br />

concluded, deals with Moldova and North<br />

Macedonia are about to start. The ministry<br />

is conducting FTA negotiations with more<br />

than 17 countries.<br />

Commenting on the first six-month results<br />

of the auto industry, Eroldu said that the<br />

rate of locality in total vehicles is at the<br />

level of 45%.<br />

“One of every two vehicles sold in Turkey<br />

is domestic production. This is something<br />

that is not available in many countries in<br />

Europe.”<br />

The Turkish automotive industry had a<br />

foreign trade surplus of approximately $9.5<br />

billion in 2021. In the first six months of<br />

<strong>2022</strong>, this figure stood at $4.5 billion (TL<br />

80.27 billion). A foreign trade surplus of<br />

around $9 billion-10 billion is expected at<br />

the end of the year.<br />

Turkey’s car exports neared $4.6 billion in<br />

the January-June period as the country sold<br />

vehicles to 97 countries.<br />

France, Turkey’s second main market in<br />

the automotive sector, topped the list of<br />

countries in the country’s car exports.<br />

In the first half of the year, exports to<br />

France decreased by 30% to $659 million<br />

compared to the same period last year.<br />

The second country in Turkey’s passenger<br />

car exports was the United Kingdom.<br />

In the January-June period of last year,<br />

$395 million worth of passenger cars were<br />

sold, while the figure reached $522.78<br />

million in the same period this year.<br />

Passenger car exports to Spain, which ranks<br />

third, increased from $405.86 million to<br />

$456.7 million.<br />

Turkey’s exports to France, the U.K. and<br />

Spain accounted for 35.7% of the country’s<br />

total passenger car exports in the January-<br />

June period, while Italy and Germany<br />

ranked fourth and fifth, respectively.<br />

Meanwhile, automotive production in<br />

Turkey grew 1.5% year-over-year in the<br />

first half of <strong>2022</strong>, according to new data<br />

released.<br />

Automakers in Turkey manufactured<br />

649,311 vehicles in January-June, including<br />

automobiles and commercial vehicles, read<br />

a report by the <strong>Automotive</strong> Manufacturers<br />

Association.<br />

Some 72% of all vehicles manufactured<br />

were exported, a 1.2% annual rise to<br />

466,995 units.<br />

Turkey generated $15.5 billion from vehicle<br />

exports in the six-month period, up 53%<br />

from a year ago.<br />

The country’s overall auto sales market<br />

shrank by 8.8% on an annual basis to<br />

375,683 units in January-June, the report<br />

said.<br />

Passenger car production fell 8% to<br />

382,947 units in the same period.<br />

In June, Turkey’s automotive makers<br />

manufactured 135,424 vehicles, a 26.3%<br />

surge from a year ago.<br />

Top international automakers – including<br />

Ford, Honda, Hyundai, Mercedes, Renault<br />

and Toyota – have factories in Turkey,<br />

which is one of the world’s top auto sales<br />

markets.<br />

<strong>October</strong> <strong>2022</strong> 90


The PI Group and Averna<br />

announce their partnership<br />

This alliance shall develop innovative<br />

automation solutions for high-quality<br />

product manufacturing.<br />

Physik Instrumente (PI), an international<br />

group of companies focusing on highprecision<br />

motion and positioning<br />

solutions, and Averna, the leading<br />

global test & quality solutions provider,<br />

announced today that they have formed<br />

a new partnership. By combining the<br />

competencies of both companies<br />

advanced automation solutions can be<br />

delivered to meet the growing need for<br />

flexible, scalable, and high-throughput<br />

manufacturing and test equipment.<br />

“We are very excited to begin this<br />

partnership,” explains Niels Davidts, Vice<br />

President of Europe at Averna. “Having<br />

worked with PI products in the past, we<br />

understand the power of what they offer.<br />

They are unique in what they do, and we<br />

know how to make them work best for our<br />

clients. A closer partnership will open a lot<br />

of opportunities for both parties.”<br />

Scott Jordan, long-standing photonics<br />

expert and business developer at PI<br />

emphasizes: “Working with Averna has<br />

been very rewarding. We have always been<br />

impressed with the systems they design<br />

for test, quality, and precision assembly.<br />

Combined our knowledge with Averna’s<br />

skills, we can now approach customer<br />

challenges in ways that have never been<br />

done before.”<br />

With significant overlap in several<br />

markets including industrial automation,<br />

automotive, consumer electronics,<br />

communications, and life sciences, PI and<br />

Averna offer each other extensive expertise<br />

in different areas of focus. Their goal is to<br />

expand each offering to their clients by<br />

integrating PI’s unique precision positioning<br />

and micro-robotics systems into Averna’s<br />

customized quality and assembly turnkey<br />

solutions. To date, they have delivered<br />

numerous joint projects, improving results<br />

for a variety of applications including<br />

camera & projector assembly, laser<br />

alignment, fiber alignment and optical<br />

wafer scanning.<br />

With over 70+ years of combined<br />

experience, almost 2000 specialists and<br />

multiple offices located worldwide, PI and<br />

Averna are available to support their clients<br />

through multiple disciplines and time<br />

zones.<br />

<strong>October</strong> <strong>2022</strong> 92


Maserati unveils<br />

its electric<br />

GranTurismo<br />

Folgore sports car<br />

Maserati has unveiled the GranTurismo<br />

Folgore, one of three versions of the<br />

maker’s new all-wheel drive four-seater<br />

introduced for 2023. At the same event,<br />

Maserati also introduced the Modena (490<br />

horsepower on a 3.0 liter V6 Nettuno twin<br />

turbo) and the high-performance Trofeo<br />

variant with the same engine boosted up<br />

to 550 horsepower. A Maserati executive<br />

described the electric GT as “the same<br />

body wearing a different suit” to illustrate<br />

the relationship between the new models.<br />

Earlier this year, Stellantis-owned Maserati<br />

announced its first EV, the Grecale<br />

Folgore. While the Grecale Folgore isn’t<br />

expected until 2023, Maserati is wasting<br />

no time filling out its EV roster with the<br />

introduction of GranTurismo Folgore, the<br />

next electrified model to join the Folgore<br />

electric lineup.<br />

The Folgore GT (which is Italian for<br />

“lightning”) will electrify the revived<br />

GranTurismo line with an 800-volt batteryelectric<br />

system. The 92.5 kWh battery<br />

powers a three-motor setup that sends a<br />

combined 760 horsepower to the wheels.<br />

The battery pack resides in a T-bone shape<br />

along the bottom of the vehicle, unlike the<br />

familiar skateboard layout seen in other<br />

EVs. This gives the all-wheel drive car a low<br />

center of gravity but allows it to maintain<br />

a sports car design. It also lets the car sit<br />

low with an overall maximum height of<br />

53.2 inches, a rarity for battery-powered<br />

vehicles.<br />

The battery will provide 280 miles of<br />

range and is fast-charging (up to 270 kW)<br />

compatible, adding a claimed 60 miles of<br />

charge in 5 minutes in ideal conditions.<br />

The Folgore is the fastest of the three new<br />

GTs, but at 4,982 pounds also the heaviest.<br />

(The battery alone accounts for 1,300 of<br />

those pounds.) Nevertheless, Maserati<br />

claims the Folgore GT will be the fastest<br />

all-electric luxury option with 2.7-second<br />

acceleration to reach 60 mph and 8.8<br />

seconds to 120 mph. The top speed is<br />

nearly 200 mph.<br />

The most similar EV is the Porsche Taycan<br />

with a 225-mile range on a similarly sized<br />

battery. The Taycan sits taller and only<br />

reaches 482 horsepower but weighs close<br />

to the same as the GranTurismo Folgore.<br />

The 4S version takes 3.8 seconds to get<br />

to 60 mph. The “Vehicle Domain Control<br />

Module” brings four driving modes: Max<br />

Range (for the Folgore) or Comfort, GT,<br />

Sport and the sportiest Corsa. The VDCM is<br />

essentially the car’s brain and controls the<br />

energy, torque and vertical dynamics.<br />

Different regeneration modes will be<br />

employed to recuperate energy while<br />

driving.<br />

<strong>October</strong> <strong>2022</strong> 94


Motor Aşin showed up at Frankfurt Automechanika<br />

brand, our motto is already ‘we are near<br />

you’. Especially with the pandemic, we felt<br />

the need to spread the culture we learned<br />

in the domestic market to export channels.<br />

Once we were passive sellers. Customers<br />

would come and find us. This is based upon<br />

the value of both ourselves and the brands<br />

we represent. However, the changing<br />

dynamics pushed us to be in those markets<br />

with more active marketing strategies.<br />

We made a good structuring in our export<br />

department related to this. We switched to<br />

a system where each region is responsible<br />

for itself and we started to gain from this<br />

system. Especially with the Ukraine-Russia<br />

crisis, we were excited to be a market<br />

where Russian and Ukrainian customers<br />

showed interest. Africa and then South<br />

America are our target markets. Eastern<br />

Europe is a valuable region for us and we<br />

are also working on it.<br />

Motor Aşin, which is one of the important<br />

brands of the spare parts and after-sales<br />

sector in the automotive and commercial<br />

vehicle market in our country, appeared at<br />

the Automechanika Frankfurt fair that was<br />

held in Germany in September. Saim Aşcı,<br />

CEO of Motor Aşin, underlining that they<br />

had participated in Automechanika Dubai<br />

and Moscow fairs before, said that they<br />

wanted to meet with industry partners and<br />

carry the difference of Motor Aşin, which is<br />

a Turkish brand, to Europe.<br />

First of all, can you give brief<br />

information about Motor Aşin?<br />

Motor Aşin is a 50-year-old family company<br />

that was founded by my father and uncle.<br />

Our first establishment was in Elazığ.<br />

Afterwards, we continued to wholesale,<br />

import and export, and we have come<br />

this far. We are currently the distributor<br />

of more than 200 premium brands in 7<br />

different locations with our more than<br />

300 employees. We have more than 4000<br />

domestic at home and we have hundreds<br />

of customers in more than 70 countries<br />

which we do export activities.<br />

Which ones are more effective when<br />

we look at the potential of the<br />

countries you export to?<br />

While our relations with neighboring<br />

countries come to the fore, the Turkic<br />

Republics, Far East and Europe are among<br />

the leading export markets for us. We, as<br />

both a brand and a country, have more<br />

capacity and intensive work for these<br />

areas. The production capabilities, logistics<br />

and other factors are very important here.<br />

Are there new target markets?<br />

We evaluate the event from two aspects<br />

as internal and external dynamics. We<br />

aim to increase our closeness with our<br />

customers by further strengthening the<br />

branching logic within ourselves. As a<br />

What are your goals as a brand in the<br />

next period?<br />

We are making our customers feel our<br />

closeness with the visits we make and will<br />

make in their own countries with our wellknown<br />

brand awareness by expanding our<br />

staff. We are aiming to increase our export<br />

rate, which is currently 20%, to 40%.<br />

We are continuing to work to achieve these<br />

goals within our 3-year strategic planning.<br />

We will do everything we need to do on<br />

both the back of house and front of house.<br />

Turkey, as a country, is a major<br />

market for the automotive supply<br />

industry. If we need to evaluate what<br />

has happened in terms of the sector<br />

recently, how does the world see us as<br />

a country?<br />

The geopolitical point where our country<br />

is located is really valuable. When we<br />

evaluate our richness in both knowhow<br />

and qualified personnel together,<br />

we can bring the country’s position to a<br />

much better place in the sector by being<br />

managed by a superior mind very well.<br />

When we look at the sector so far, the<br />

conventional, that is, the old traditional<br />

automotive market, has moved towards<br />

another point by digitizing itself. There<br />

is a transition period here. In tradition,<br />

we, as the main manufacturer or as the<br />

patent holder, have a somewhat delayed<br />

<strong>October</strong> <strong>2022</strong> 98


structure. That we do not have an engine<br />

of our own can be given as an example of<br />

this. We needed to catch a development<br />

point right at this time for change, and we<br />

caught it with TOGG. The important thing<br />

is to be able to export and produce with<br />

added value. Being able to expand with<br />

technological products supports us in this<br />

regard. We can easily see where our brand<br />

value has reached in the breakthroughs<br />

made in the Defense Industry. I am sure<br />

that our own national project will gain<br />

a respectable place in the world both<br />

in terms of technology and qualified<br />

personnel. These are very valuable and<br />

important. When a good team with<br />

qualified personnel emerges against all<br />

these transformations and evolutions, it<br />

will bring great benefits to the country<br />

in academic and commercial terms due<br />

to location that we are advantageous<br />

geopolitically.<br />

We must come out of the position of<br />

a country that realizes its production<br />

capabilities under the moderation of<br />

others. We are evolving to this point.<br />

Because there is no certain know-how<br />

before, you have to make that partnership.<br />

However, after obtaining a certain<br />

knowledge and experience, we must reveal<br />

a value of our own. With this perspective,<br />

TOGG is very valuable. It is a formation that<br />

moves within itself and with its own design.<br />

Although it finds its solution partner from<br />

abroad, it is very valuable that it is master<br />

mind and it itself manage.<br />

<strong>October</strong><br />

99 <strong>2022</strong>


Weak euro<br />

taking a toll<br />

on Türkiye’s<br />

exporters<br />

With the euro falling against the U.S. dollar,<br />

some exporting industries in Türkiye are<br />

bearing the brunt as they pay for imports in<br />

dollars but collect export revenues mostly<br />

in euros.<br />

The euro fell below parity with the dollar,<br />

diving to its lowest level in 20 years.<br />

The textile sector, whose export revenues<br />

amounted to $21.5 billion in the past<br />

year, pays for cotton it imports in the<br />

U.S. dollar, but some 70 percent of the<br />

industry’s exports go to Europe. Another<br />

sector affected by the euro-dollar parity is<br />

the fisheries sector, which sells most of its<br />

products to the continent.<br />

The textile sector already had problems<br />

accessing financing, and now on top of that<br />

came the weakening of the euro, which<br />

erodes the revenues of the companies<br />

in the industry, said Burak Sertbaş, the<br />

chair of the Aegean Apparel Exporters’<br />

Association (EHİB).<br />

“Inputs used in the sector are paid in the<br />

dollar, but export revenues in euro. Prices<br />

of exported products also depressed due<br />

to the expectations regarding the global<br />

recession,” Sertbaş explained, warning<br />

that the industry’s exports may come to a<br />

halt and even decline in the second half of<br />

<strong>2022</strong>.<br />

The apparel and ready-wear clothing<br />

sector’s exports rose by 3 percent in terms<br />

of the euro from 118 million euros to 122<br />

million euros in July, but in terms of the<br />

dollar, they fell by 11 percent from $140<br />

million to $125 million, he said. “Probably<br />

this trend will continue in coming months.”<br />

Some European nations import goods from<br />

Asia, making payments in the dollar, and<br />

amid the weakening of the euro against the<br />

dollar, some European importers may turn<br />

to Türkiye, he added. “If this happens, it<br />

can make up for some of our losses.”<br />

The situation is no different in the<br />

aquaculture sector. Export revenues of the<br />

sector increased by 33.5 percent in terms<br />

of euro, but the rise was only 20 percent in<br />

terms of the dollar.<br />

Companies operating in the industry pay<br />

for most of the inputs in the dollar, said<br />

Bedri Girit from the Aegean Fisheries and<br />

Animal Products Exporters’ Association.<br />

Some seven of the industry’s top 10 export<br />

markets are in Europe, he noted, stressing<br />

that companies are losing money due to<br />

the weaker euro.<br />

In July, Türkiye’s exports increased more<br />

than 13 percent to $18.6 billion, according<br />

to the latest data from the Trade Ministry.<br />

Among the top five export markets were<br />

Germany at $1.5 billion and Italy at $844<br />

million.<br />

Last month, exports to the European<br />

Union rose by 5.2 percent to $7.4 billion,<br />

accounting for nearly 40 percent of all<br />

exports. <strong>Exports</strong> to the bloc increased from<br />

$51 billion in January-July last year to $60.7<br />

billion in the same period of <strong>2022</strong>, which<br />

corresponded to 42 percent of Türkiye’s<br />

total export revenues.<br />

<strong>October</strong> <strong>2022</strong> 100


Electric Thinking<br />

for Today and<br />

Tomorrow<br />

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

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

automotive repair workshops will need relevant products and technologies.<br />

A short film, premiering at the show,<br />

illustrates Gates’ commitment to<br />

innovation by developing new solutions for<br />

the next generation of automobiles. The<br />

story focuses on Senteret, a family- owned<br />

garage based in Norway - a country that is<br />

leading the drive towards a more complete<br />

Electric Vehicle (EV) parc.<br />

“We want parts distributors to know that<br />

we will be doing everything we can to help<br />

them inspire their garage customers as<br />

they adapt to the new opportunities that<br />

electrification can deliver,” said Steven<br />

Zimmer, VP <strong>Automotive</strong> Aftermarket,<br />

Gates EMEA. “We are extending our<br />

product ranges, introducing new ones, and<br />

developing specialist technical support<br />

networks to help get them charged-up and<br />

ready for an electric future.”<br />

Successful Original Equipment (OE)<br />

collaborations have enabled Gates to<br />

develop aftermarket parts programmes<br />

for Hybrids and EVs. When it comes to<br />

new powertrain systems and technologies,<br />

Gates is at the forefront of vehicle systems<br />

design and the development of dynamic<br />

systems capabilities.<br />

“We develop and manufacture parts. We<br />

understand the market. Such expertise<br />

allows us to set standards for quality<br />

and reliability in the aftermarket, which<br />

represents a significant part of our<br />

business,” highlights Steven. EV batteries<br />

require precise temperature control via the<br />

thermal management system. Moreover,<br />

the materials used in these thermal<br />

management hoses are evolving to include<br />

thermoplastic designs for weight savings,<br />

greater flexibility, and easier installation.<br />

The Gates E-CoolTM range of Electric Water<br />

Pumps is designed to meet or exceed OE<br />

specifications. The Gates range of OEexact<br />

Modular Coolant Hose assemblies<br />

for EVs and Hybrids include any standard<br />

fit sensors, OE-exact connectors and are<br />

made from the same materials as the OE<br />

products they are designed to replace.<br />

“We also supply Electric PowerSteering<br />

belts, Electric Parking Brake belts and<br />

have additional plans to add replacement<br />

parts for EV HVAC systems. For Hybrids,<br />

we recently announced extensions to the<br />

E-StartTM range as well,” says Steven.<br />

Each E-Start Kit part number includes an<br />

E-StartTM Micro-V Belt plus the related<br />

E-StartTM Micro- V Belt Tensioner and<br />

any Idlers needed for specific applications.<br />

Gates’ customers will be excited by the<br />

latest extension, which includes popular<br />

models such as the Audi A4 2.0 Mild Hybrid<br />

and the Audi Q5 Quattro 2.0 Mild Hybrid.<br />

Casper Haenbeukers, VP, Global Engine<br />

Systems Powertrain Engineering, said that<br />

it was the launch of the E-StartTM range<br />

that helped build the association of Gates<br />

belts and kits with a wide range of Hybrid<br />

vehicles. However, he states Gates will<br />

continue to develop and support the legacy<br />

products for the Internal Combustion<br />

Engine (ICE) market:<br />

“By 2030, it is estimated that only around<br />

8% of the car parc will be fully electric<br />

in EMEA. The remainder will be largely<br />

Hybrids, in any configuration, featuring ICE<br />

technology such as power recuperation<br />

systems and power boost modes. Many will<br />

be fitted with Gates belts and tensioners<br />

that are designed for maximum efficiency<br />

and durability.”<br />

The future is a more electrified vehicle<br />

parc. That means opportunities for<br />

distributors and their garage customers in<br />

the independent aftermarket. In order to<br />

manage the successful transition, they will<br />

need more information. They will require<br />

the right parts from the right brand. Steven<br />

Zimmer points out that Gates is already<br />

able to supply market-leading products for<br />

EVs and Hybrids:<br />

“We are already able to demonstrate<br />

great coverage on many of our ranges,<br />

we have dedicated installation guidance,<br />

professional tools, technical tips, and<br />

expert training programmes. Gates is well<br />

placed to be that brand.”<br />

<strong>October</strong> <strong>2022</strong> 102

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