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Automotive Expotrs November 2022

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Monthly automotive aftermarket magazine

GROUP CHAIRMAN

H. FERRUH ISIK

PUBLISHER:

İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Managing Editor (Responsible)

Mehmet Söztutan

mehmet.soztutan@img.com.tr

Editor

Ali Erdem

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EDİToR

Mehmet Soztutan, Editor-in-Chief

mehmet.soztutan@img.com.tr

Advertising Managers

Adem Saçın

+90 505 577 36 42

adem.sacin@img.com.tr

Enes Karadayı

enes.karadayi@img.com.tr

International Marketing Coordinator

Ayca Sarioglu

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Editor

Yusuf Okçu

yusuf.okcu@img.com.tr

Finance Manager

Cuma Karaman

cuma.karaman@img.com.tr

Digital Assets Manager

Emre Yener

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Technical Manager

Tayfun Aydın

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Design & Graphics

Sami aktaş

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Accountant

Yusuf Demirkazık

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Subsciption

İsmail Özçelik

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HEAD OFFICE:

İstmag Magazin Gazetecilik

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Automechanika Drives In

Turkish automotive industry, with its vehicles and auto parts manufacturing sub-sectors, is

one of dynamically exporting industries of the Turkish economy. As noted earlier in this

column, the auto parts industry of Türkiye has developed rapidly as a consequence of

developments in the automotive industry. The autoparts industry with its large capacity,

wide variety of production and high standards, supports automotive industry production

and the vehicles in Türkiye and also has always ample potential for exports. Business

people operating in the industry have become outward oriented more than ever before.

These companies not only dominate the primary supply markets but also capture an

increasing share of the replacement market. Their continued success in exports markets

depend on close technical links with part makers in industrialised countries and the

willingness of their foreign partners to integrate their Turkish counterparts into their

production-distribution networks as regular suppliers of high quality, low-cost components.

Türkiye's auto parts industry exports are increasing steadily year by year. Türkiye is the only

country within the surrounding geographical area to have established a well-advanced

automotive industry. Therefore, the automotive industry is strategically important both for

Türkiye and for firms that will invest in Türkiye. We think that technology will always be the

key for the survival of the automotive industry. History says so.

This month, we participate in Automechanika Dubai to convey the message of the Turkish

automotive and auto spare parts exporters. The stars of the automotive world will be

meeting at Automechanika Dubai as usual.

Automechanika Dubai, showcasing the latest global trends, has turned out to be a

remarkable automotive aftermarket platform for the Middle East and Africa. The Fair

which covers the full range of automobile, truck and bus parts, equipment, components,

accessories, tools, and services continues to bring world renowned manufacturers,

suppliers and service providers in touch with one of the most important growing markets

in the world. The markets targeted by the Fair are widely recognised as the most attractive

in the world in terms of future potential.

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

share in the increasingly competitive automotive markets.

We wish lucrative business for all participants.

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Tel: 0212 454 30 00

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automotiveexport

automotiveexports


Automechanika Dubai: The largest international

trade show for the automotive aftermarket

industry in the Middle East

After a hugely successful edition in 2021, Automechanika Dubai

is all set for a much bigger show in 2022. From 22 – 24 November

2022, the international automotive industry will once again

gather at the Dubai World Trade Centre to explore new business

opportunities and scale new heights.

Despite the challenges of COVID-19, Automechanika Dubai 2021

brought together 20,574 visitors from 129 countries, 578 exhibitors

from 47 countries, and 12 official country pavilions to re-connect,

and engage in serious business conversations, sign new deals,

explore new partnerships and stay up-to-date on the latest market

trends. This is the ideal one-stop trade platform in the MEA

region for businesses in the automotive aftermarket and service

industry seeking to expand their network, explore opportunities,

get updated with the latest trends and solutions while evaluating

market trends and sharing expertise.

Exhibitor survey also revealed that with the success of the 2021

edition, 95% of exhibitors will return for Automechanika Dubai

2022.

Key figures for Automechanika Dubai 2022:

• 1000+ Exhibitors

• 58+ Exhibiting Countries

• 20+ Country Pavilions

• 20,000+ Visitors

• 130+ Visiting Countries

November 2022 14


Fablink acquired by

EV Technology Group

Fablink Group, the leading UK specialist manufacturing expert

and Tier 1 supplier, announces that it has signed a Definitive

Agreement to be acquired by EV Technology Group (the

“Acquisition”). The Acquisition is strategically important for the

rapidly growing and listed EV Technology Group giving it access

to Fablink’s world-class in-house manufacturing and engineering

expertise. Since it was founded, Fablink has built up a marketleading

position as a Tier 1 supplier to the automotive, transport

and off-highway sectors, counting leading global OEMs in its

customer base.

Fablink Group also encompasses Streamline Automotive, a new

division that provides specialist low and medium volume electric

vehicle manufacturers with turnkey clean build vehicle assembly

capabilities. Richard Westley, CEO, and founder of Fablink Group

will remain in his current position in the new structure and will

also join the EV Technology Group board as Chief Operating

Officer upon completion of the Acquisition. Fablink will also retain

its current leadership team, facilities and all of its 750+ strong

workforce.

Richard Westley, CEO, and founder Fablink Group stated, “There’s

no doubt that EV Technology Group’s acquisition of Fablink is a

fantastic fit. This Acquisition not only presents a superb blend of

resources and capabilities, aligned to underpin EV Technology

Group’s growth plans but also gives Fablink Group a platform

for future investment in our people, facilities & technology.

The acquisition will allow us to accelerate the delivery of our

strategies in support of our existing global OEM customers, as

we continue on our mission of achieving operational excellence

across our manufacturing sites and also provide a platform to

further develop the business as we look to support EV Technology

Group’s own brands. This is a tremendously exciting step for

Fablink and we are looking forward to an even brighter future as

part of a larger group.”

Wouter Witvoet, CEO of EV Technology Group stated “This

Acquisition is of huge strategic importance to the EV Technology

Group. Having access to Fablink’s 750 world-class electric vehicle

manufacturing and engineering experts in-house makes us more

competitive, efficient, and agile for Fablink’s existing customers

and our own future projects. On a personal note, I am also

looking forward to working closely with Fablink’s founder and

CEO Richard Westley who has built a remarkable world-leading

business and will also be joining me at EV Technology Group to

help steer the future success and growth of the entire group.”


Automotive Meetings Bursa’ attracts remarkable interest

Automotive Meetings Bursa is the major automotive supply chain

event in Türkiye for automotive and aftermarket industry.

Engineering, procurement, supply chain, fabrication, commodity

teams, suppliers and service providers will meet through prearranged

B2B meetings.

AM Bursa is the venue where requirements meet technologies and

capabilities without the distractions found at traditional exhibitions.

Automotive Meetings Bursa is expected to attract great interest

as usual because of the fact that there are numerous producers

of automotive components and services in Bursa. More than half

of these manufacturers compete in international markets and set

high standards of export figures. Among them are many small and

medium manufacturers with advanced technologies, constant

updates and support from outside Türkiye, and a dynamic company

structure. Many companies operating in the Turkish market

possesses international certifications, enhancing their global market

position. The Turkish automotive supplier industry produces almost

all types of parts, components and spare parts.

November 2022 22


Automechanika Frankfurt and

Autopromotec dates announced

Autopromotec 2023 will be held in Bologna

from 16 to 18 November 2023

Automechanika Frankfurt will take place

from 10 to 14 September 2024

Autopromotec will be held in Bologna from

21 to 24 May 2025

In order to get an accurate picture of

market sentiment, organisers took

advantage of the last Autopromotec to

commission an independent survey of

exhibitors aimed in particular at identifying

their preferences for scheduling the sectors’

international events.

The survey revealed that, once the

pandemic is over, exhibitors would prefer

that the two most important international

trade fairs for the automotive aftermarket –

Autopromotec and Automechanika – return

to their traditional schedule: Autopromotec

in odd-numbered years and Automechanika

in even-numbered years.

Representatives of these two events agreed

that it was important to satisfy the market’s

requirements here, and as a consequence,

Automechanika Frankfurt will take place

on 10-14 September 2024, while the 30th

Autopromotec will take place on 21-24 May

2025 in the Bologna fair district, restoring

the events’ alternation that had been

interrupted by the pandemic.

In addition, Autopromotec is creating a new

event, to be held on 16-18 November 2023.

The event, which is still in the design phase,

is devoted to manufacturers, component

suppliers, dealers and buyers and focuses

on the challenges facing the entire mobility

industry, from the energy transition and

sustainability to new business models. We

will reveal more as the event approaches.

We invite you to save the date today. Renzo

Servadei, Autopromotec CEO: “A positive

attitude towards competitiveness includes

an awareness that markets need to be

healthy and motivated. By restoring the

balance between these events, we will

avoid additional stress for companies that

have already been put to the test. At the

same time, we are making it possible for

them to participate in both of our trade

shows, creating considerable positive

energy for everyone involved.”

Michael Johannes, Vice President of

Messe Frankfurt and Brand Manager

Automechanika, added: “We are delighted

to announce that we have achieved a

common understanding with all involved

parties, e.g. customers, partners,

associations and media. Numerous personal

conversations with our international

network helped to pave the way over the

past few months. This will help everyone

in the automotive aftermarket to optimise

their planning.”

November 2022 24


Türkiye’s vehicle and

auto parts industry

prospers more than ever

Vehicle industry production in Türkiye dates

back to the mid-1950s and the industry

gained momentum in the early 1960s.

After manufacturing some prototype

vehicles during the 1950s, the first vehicle

assembly company was established in

1954 (Turk Willys Overland Ltd.) for jeep

manufacturing. By 1955, trucks, and by

1963, buses were being assembled in

Türkiye. Then passenger car assembly

companies, namely TOFAŞ (FIAT), OYAK

(RENAULT) and OTOSAN (FORD) began

operations in the next three years. In 1966,

the industry also began to assemble its

own cars (OTOSAN). The Turkish-made

passenger car of those times, “ANADOL”,

is nostalgia now. The two major producers

of cars, TOFAŞ and OYAK-RENAULT, under

Italian and French licenses respectively,

established their production lines in 1971.

Japanese and South Korean car

manufacturers have established joint

ventures in Türkiye. As to passenger cars

and light commercial vehicles, Turkish

manufacturers are becoming world

production centers of global companies,

with whom they have license agreements.

At present, Türkiye is the biggest light

commercial vehicle and bus manufacturer

in the European Union.

November 2022 26


Turkish spare parts industry produces parts

and pieces for the vehicles manufactured

in our country and in the global market, as

well as for the OEM and After Market.

Türkiye has a strong component sector and

in recent years, it has developed a highly

competitive components industry providing

products compatible with brands such as

GM, Mercedes, BMW, Opel, Toyota, Fiat

and Ford. The Turkish spare parts industry,

with its large capacity, and a wide variety

of production and high standards, supports

automotive production and the vehicle

park in Türkiye (21 million vehicles), and

has ample potential for exports.

The Turkish automotive and spare

parts industry is concentrated in the

Marmara Region, mainly in Bursa. Two

major car factories and two “Organized

Industrial Zones” are located in Bursa.

Other important cities are Istanbul, İzmir,

Kocaeli, Ankara, Konya, Adana and Manisa.

Another development in the Turkish Auto

Parts Industry is the establishment of

the TAYSAD Components Manufacturers

Industrial Zone (TOSB). Due to the high

export potential of the sector and Türkiye’s

regional advantages, the spare parts sector

has been attracting foreign investors. At

present, the number of foreign investors in

the spare parts sector is about 200. Most of

the world leaders in the sector have jointventures

with Turkish companies.

Turkish automotive manufacturers are

in direct contact with local spare parts

manufacturers for procurement and 70%

of these companies are SMEs. The total

number of spare parts manufacturers

in Türkiye is about 4000. %30 of those

companies have international quality

certificates (ISO 9000, QS 9000, ISO 14000

etc.).

The Turkish spare parts industry produces

almost all parts and components. At

present, the local parts and components

production consists of:

Complete engines and engine parts

Chassis parts and spare parts

Radiators Forged and cast parts

Heating, ventilating & air conditioning

systems (HVAC systems)

Electrical equipment and illumination

systems

Power trains, Batteries

Brake and clutch parts and components

Design and engineering services

Hydraulic and pneumatic systems

Suspension systems

Security systems and safety parts

Rubber and plastic parts

Castings and forgings

Batteries, Auto glass , Seats

Türkiye’s spare parts industry exports are

increasing significantly with the focus on

replacement components. The main spare

parts products exported are engine parts,

tyres and tubes, accessories for bodies,

road wheels and parts, rubber parts for

motor vehicles, transmission shafts and

cranks. In fact, Türkiye exports many

cars, buses and trucks in parts. In terms

of the breakdown of spare parts exports

by province, Bursa, Istanbul, Kocaeli and

Izmir have the major share. The number

of companies in the spare parts industry

is about 4000. Approximately 500 auto

parts exporters operate in the country, and

around 70% of their output is exported

to the European Union. Turkish spare

parts products are destined for a wide

range of countries in the world. The main

export markets are Germany, France, Italy,

Romania, the United Kingdom, USA, Spain,

Iran, Belgium, Poland and the Russian

Federation. Turkish spare parts exporters

follow European and international

standards and norms. Many supplier

companies have important, high-level

customers like Porsche, Bentley, BMW,

Jaguar, Land Rover, Audi, Daimler Benz and

Mercedes and major producers such as VW,

FORD and GM

November

2022

28


Electric Thinking for Today and Tomorrow

A short film, premiering at the show,

illustrates Gates’ commitment to

innovation by developing new solutions for

the next generation of automobiles. The

story focuses on Senteret, a family- owned

garage based in Norway - a country that is

leading the drive towards a more complete

Electric Vehicle (EV) parc.

“We want parts distributors to know that

we will be doing everything we can to help

them inspire their garage customers as

they adapt to the new opportunities that

electrification can deliver,” said Steven

Zimmer, VP Automotive Aftermarket,

Gates EMEA. “We are extending our

product ranges, introducing new ones, and

developing specialist technical support

networks to help get them charged-up and

ready for an electric future.”

Successful Original Equipment (OE)

collaborations have enabled Gates to

develop aftermarket parts programmes

for Hybrids and EVs. When it comes to

new powertrain systems and technologies,

Gates is at the forefront of vehicle systems

design and the development of dynamic

systems capabilities.

“We develop and manufacture parts. We

understand the market. Such expertise

allows us to set standards for quality

and reliability in the aftermarket, which

represents a significant part of our

business,” highlights Steven. EV batteries

require precise temperature control via the

thermal management system. Moreover,

the materials used in these thermal

management hoses are evolving to include

thermoplastic designs for weight savings,

greater flexibility, and easier installation.

The Gates E-CoolTM range of Electric Water

Pumps is designed to meet or exceed OE

specifications. The Gates range of OEexact

Modular Coolant Hose assemblies

for EVs and Hybrids include any standard

fit sensors, OE-exact connectors and are

made from the same materials as the OE

products they are designed to replace.

“We also supply Electric PowerSteering

belts, Electric Parking Brake belts and

have additional plans to add replacement

parts for EV HVAC systems. For Hybrids,

we recently announced extensions to the

E-StartTM range as well,” says Steven.

Each E-Start Kit part number includes an

E-StartTM Micro-V Belt plus the related

E-StartTM Micro- V Belt Tensioner and

any Idlers needed for specific applications.

Gates’ customers will be excited by the

latest extension, which includes popular

models such as the Audi A4 2.0 Mild Hybrid

and the Audi Q5 Quattro 2.0 Mild Hybrid.

Casper Haenbeukers, VP, Global Engine

Systems Powertrain Engineering, said that

it was the launch of the E-StartTM range

that helped build the association of Gates

belts and kits with a wide range of Hybrid

vehicles. However, he states Gates will

continue to develop and support the legacy

products for the Internal Combustion

Engine (ICE) market:

“By 2030, it is estimated that only around

8% of the car parc will be fully electric

in EMEA. The remainder will be largely

Hybrids, in any configuration, featuring ICE

technology such as power recuperation

systems and power boost modes. Many will

be fitted with Gates belts and tensioners

that are designed for maximum efficiency

and durability.”

The future is a more electrified vehicle

parc. That means opportunities for

distributors and their garage customers in

the independent aftermarket. In order to

manage the successful transition, they will

need more information. They will require

the right parts from the right brand. Steven

Zimmer points out that Gates is already

able to supply market-leading products for

EVs and Hybrids:

“We are already able to demonstrate

great coverage on many of our ranges,

we have dedicated installation guidance,

professional tools, technical tips, and

expert training programmes. Gates is well

placed to be that brand.”

November 2022 32


Turkish tech firm TOGG,e-commerce

giant Trendyol ink deal

Move aims to develop joint solutions that

will take user experience to next level

Türkiye’s Automobile Initiative Group (TOGG)

and e-commerce giant Trendyol signed

a business partnership letter of intent to

improve the user experience.

According to a joint statement from the two

companies, as part of the cooperation to be

implemented in 3 stages, the services for

users will be mutually integrated.

The two companies aim to develop joint

solutions that will take the user experience

to the next level.

“Networked, electrical and autonomous

smart devices are becoming new living

spaces for us to do our work at home and in

the office, and the paths of new mobility and

e-commerce intersect at this point,” TOGG

CEO Gurcan Karakas said. Users will be able

to benefit from the services of both Togg and

Trendyol in accordance with the legislation,

Karakas added.

“In addition to door-to-door e-commerce,

options such as door to Togg smart device,

Togg smart device to the address will emerge

thanks to the deal,” he noted.

Trendyol president Caglayan Cetin said:

“We see this collaboration as Trendyol’s

direct contribution to the great leap that

Togg will bring to our country in the field of

technology and digitalization as well as the

industrial infrastructure.

November 2022 36


More tourists to

rush to Türkiye

this winter as

European prices

soar

Turkish travel companies are expecting a

rush of European tourists in the months

ahead amid higher demand following the

coronavirus pandemic and as energy prices

rocket.

“This winter we expect more tourists

than in previous years,” Cem Polatoğlu,

spokesperson for the travel operators’

association Tur Operatörleri Platformu, told

Deutsche Presse-Agentur (dpa).

“During the pandemic, people could not go

on holiday for a long time. Now that travel

restrictions have been lifted, many tourists

will feel as though they have ‘broken free

from chains,’” he said.

Additionally, the high costs of energy in

Europe are also leading to an increase in

reservations during the winter season,

particularly for accommodation that costs

less, he said. Europe faces an acute energy

crunch heading into winter after Russia

cut gas supplies in response to Western

sanctions imposed over its invasion of

Ukraine.

“It is positive for the tourism sector that

European tourists – especially pensioners

– prefer long holidays in Türkiye during

the winter months due to the increase in

natural gas prices,” said Ali Onaran, chair of

tour operator Prontotour.

He said his data showed that demand

was particularly high “from countries like

Germany, England and the Netherlands.”

Onaran said it was encouraging that more

people were booking their holidays during

the winter period despite global inflation.

“There are developments such as rising fuel

costs, energy expenses, food crises, which

affect ticket and hotel prices and therefore

people’s overall travel budget,” he said.

Despite those factors, bookings were in line

with tour operators’ expectations.

A further incentive for people to head to

Türkiye on their holidays may be the weak

Turkish lira, according to Polatoğlu.

For tourists, he said that booking a package

holiday at a five-star hotel in Türkiye

currently costs less than spending the time

in Europe. “And with much more comfort

than at home,” Polatoğlu added.

Rebound in Türkiye’s critical tourism

industry this year has been driven by

a major leap in demand from Europe,

spearheaded by Germany and the United

Kingdom, as well as Russia.

The number of holidaymakers more

than doubled in the first eight months

of the year. Around 29.3 million tourists

arrived in Türkiye from January through

August, marking a 108.5% climb from a

year ago, on pace to roughly match the

pre-pandemic levels of 2019, according to

Culture and Tourism Ministry data.

The first eight-month figure stood at 14.1

million in 2021, 7.2 million in 2020 and

31 million in 2019. The arrivals have been

mainly backed by Russian visitors, who

increasingly opted for Türkiye due to flight

restrictions applied by Western countries

after Russia invaded Ukraine, as well as

tourists from Europe. However, the number

of German and British visitors rose strongly

this year. At 3.85 million, tourists from

Germany topped the list among nations

and made up 13% of all visitors in the

first eight months, with arrivals jumping

105.73% from a year ago.

Russians followed with just over 3 million, a

22.8% year-over-year increase, and Britons

ranked third with 2.36 million, a whopping

2,120% surge from the same period in

2021, according to the data.

Tourism revenues are vital to Türkiye’s

economy as the government’s new

economic program focuses on flipping

the chronic current account deficits to a

surplus, prioritizing exports, production

and investments, and aiming to lower

the increase in consumer prices. The

government raised its year-end targets in

July to 47 million tourists and $37 billion in

revenues, up from its earlier targets of 45

million arrivals and $35 billion in income.

November 2022 40


Eurotexso accelerates the

spare parts industry with

its 32 years of experience

Eurotexso, a company that emerged with

the blending of long-term feasibility,

planning and work with experience with

32 years of commercial history, has the

characteristics of a brand that both benefits

the country’s economy by investing and

plans to continuously contribute to the

sector with its development strategies.

After years of vigorous effort the company

claims, it has become known in the

international market for supplying quality

spare parts , has won the loyalty of its

customers, most of them being long-term

business partners. Explaining the future

goals of the brand to Automotive Exports

magazine, Eurotexso General Manager

Cevat Aydoğdu answered the questions

about the sector.

Can you tell us about the foundation

story of your brand? Which products

do you have in your product range?

Founded in 1987, Eurotexso is one of the

world’s largest and most comprehensive

suppliers of aftermarket spare parts for

power steering systems.

Can you tell us about your fields of

activity? How do you work differently

from your competitors to increase

customer satisfaction?

Besides offering high-quality items,

Eurotexso claims that it has been a brand

showing high regard for pre-and aftersales

services to customers. The company

supplies over 10 000 kinds of spare parts

for steering systems: power steering oil

seals, rack bar, bushings, bearings, sensors.

What do you aim in your industry for

the coming years?

In addition to constantly upgrading product

quality, we will expand the range of our

products with the aim of becoming an evermore-comprehensive

supplier of product

to customers all over the world.

How are you affected by the

increasing export activities in the

automotive sector? Does this

momentum gained in recent years

reflect on your exports? What are the

regions you export to?

Our products are marketed under the

brand EUROTEXSO and they are highly

popular globally especially in the Europe,

Africa and Latin America due to the

company’s long-help reputation for quality,

precision, prompt delivery, large product

range and competitive prices.

November

2022

42


Türkiye’s exports

in September

increased by 9.2

percent to $22.6

billion

Export reached $188 billion in the January-

September period and $252 billion in the

last 12 months. The chemical substances

and products sector maintained its first

place in September with exports of 2.9

billion dollars. Automotive ranked second

with $2.7 billion and ready-to-wear ranked

third with $1.9 billion.

TİM Chairman Mustafa Gültepe: The

increase in unit value per kilogram in

export continues. Our unit export value

increased by 22 percent compared to

September last year to $1.62.

There does not seem to be a problem

in Türkiye’s energy security. In energyintensive

sectors, our country stands out as

a reliable supplier. We expect an increase

in demand, especially in sectors such as

iron and steel, cement, ceramics, glass, and

fertilizer.

Turkish Exporters Assembly (TİM), which

is the only umbrella organization of 100

thousand exporters with 27 sectors and

61 exporters’ associations, announced

the export data for September in Trabzon

with the participation of Trade Minister

Mehmet Muş. TİM Chairman Mustafa

Gültepe emphasized that despite the

negative climate in the global economy,

the Turkish exporter demonstrated a

successful performance in September.

Mustafa Gültepe said that according to the

General Trade System (GTS) records, export

in September increased by 9.2 percent to

reach $ 22.6 billion, and he said:

“With $22.6 billion, we achieved an all-time

high September performance. Our export

exceeded 188 billion dollars in 9 months

and 252 billion dollars in 12 months. We

have broken monthly export records in

all of the last 12 months. While 15 of our

sectors increased their exports, chemicals

sector maintained their first place with the

effect of developments in global markets.

Chemicals sector with exports of $ 2.9

billion were followed by automotive with

$ 2.7 billion, ready-to-wear and apparel

with $ 1.9 billion, steel with $ 1.7 billion,

and electrical and electronics sector with

$ 1.3 billion. In September, our cereals,

machinery, and fresh fruit and vegetable

November 2022 44


products sectors realized the highest export

in their history. There are also remarkable

increases in our automotive, furniture,

and jewelry sectors. One thousand 942

companies joined the export family. These

companies exported 114 million dollars.”

Mustafa Gültepe reported that in

September, when 45 cities increased their

exports, the top 5 cities with the most

exports were listed as Istanbul, Kocaeli,

Bursa, İzmir, and Ankara. Stating that

Sakarya, Çorum, Konya, and Gaziantep

achieved significant export increases,

Gültepe said that Trabzon also maintained

its stability. Explaining that Trabzon

exported 84 million dollars in September,

Gültepe said, “We see this beautiful city

as an important gate opening to Russia,

the Caucasus, and the Turkish Republics

with its advantageous location and wide

hinterland. Trabzon will target 2 billion

dollars in the 100th year of our republic.”

Gültepe reported that the top three

countries to which Türkiye exports the

most are Germany, the USA and Iraq.

Stating that they recorded export increases

of 221 percent to Saudi Arabia, 102 percent

to Lebanon and 71 percent to Switzerland

in September, Gültepe pointed out that

they increased exports in 131 out of 220

countries. Gültepe said, “The increase in

unit value per kilogram in exports also

continues. Our unit export value increased

by 22 percent compared to September last

year to $ 1.62.”

Reminding that the Euro/Dollar parity,

which was at the level of 1.15 at the

beginning of the year, fell to 0.96 in

September, Mustafa Gültepe emphasized

that the negative reflection of this situation

on exports continued. Stating that the

parity-related loss in exports reached

1.8 billion dollars only in September and

exceeded 10 billion dollars since the

beginning of the year, Gültepe said, “In this

critical period, it is especially important for

our companies exporting to the Eurozone

to make pricing by considering the parity

risk.”

In his speech, Mustafa Gültepe also gave

information about the trade delegations

organized to Romania and Tatarstan.

Stating that the delegations organized

with the participation of 46 people from

exporters’ associations and company

representatives focused on the sectors

where Türkiye’s competitiveness is high

and exports to the region remain relatively

low, Gültepe said, 350 representatives

from 257 foreign companies participated in

our delegations. Our companies have held

more than 600 bilateral business meetings.

We continue our trade diplomacy without a

break. This month we will have delegations

to India and the Philippines. In 2023,

we will organize trade delegations for

one month near country, one month far

country.

Gültepe said the following about

the energy crisis in the EU, which is

Türkiye’s largest market, and its possible

repercussions:

“First of all, I have to say that, as our

President said, there does not seem to be

a problem in Türkiye’s energy security. In

our meetings with our sector presidents,

we evaluated the possible repercussions

of the energy crisis for our country. In

energy-intensive sectors, Türkiye stands

out as a reliable supplier. We expect

an increase in demand, especially in

sectors such as iron and steel, cement,

ceramics, glass, and fertilizer. Due to the

energy crisis, Europe seems to have put

green transformation in the background.

However, we have an ambitious goal such

as the ‘Green Agreement’. Once the crisis

is over, Europe will focus much more on

this goal. Therefore, as an export family,

we have to prepare not only for today, but

also for tomorrow. The share of renewable

resources in world electricity production is

28 percent, while in Türkiye it is 46 percent.

Investments in this field continue rapidly

in our country. Another opportunity here

exists for our companies working on the

tools used in renewable energy production.

Europe will allocate significant financial

resources to accelerate the transformation

process. I believe that our domestic

companies will play a critical role both in

the transformation of our national energy

profile and in the export of these tools.”

Mustafa Gültepe added that they also

updated TİM’s mission and vision and set

short, medium and long-term goals in line

with their vision to place Türkiye among

the top 10 exporting countries.

November

2022

46


EU agrees ‘roadmap’ to contain energy prices

EU leaders on Oct. 21 reached agreement

on a “roadmap” aimed at putting in place

measures within to shield European

consumers from soaring energy prices.

The accord came after 11 hours of

wrangling over broad proposals to lower

energy bills as gas prices pushed skywards

by the war in Ukraine.

The bloc’s 27 member states have been

squabbling for months over which joint

initiatives to adopt, riven by the fact that

energy mixes in the countries vary greatly.

While the announcement of the summit

text made a public show of unity, it was

clear that the coming negotiations would

remain difficult. One step in that would

come with a meeting of EU energy ministers

in Luxembourg.

The summit agreement set out a “solid

roadmap to keep on working on the topic

of energy prices”, European Commission

chief Ursula von der Leyen told a media

conference.

The published text calls on the European

Commission and EU countries to find

ways to shield consumers from the high

prices “while preserving Europe’s global

competitiveness... and the integrity of the

Single Market”.

At least 15 EU countries - more than half

the bloc - are pushing for an ambitious cap

on prices and are increasingly unsettled

by strikes and protests over the cost of

living spreading across France, Belgium and

other member states. But the price-cap

idea has met resistance from Germany,

the EU’s biggest economy, fearing that

gas supplies could end up shifting to

more lucrative markets in Asia. Several

smaller economies are also furious that

the German government will not back a

gas cap and for going it alone in helping

its citizens pay for high prices with a

200-billion-euro ($196 billion) spending

bonanza. In the end, the agreed text said

a “cost and benefit analysis” of a price cap

for electricity generation should be carried

out, and that the impact beyond Europe

would be assessed. French President

Emmanuel Macron, who had gone into the

summit saying Germany was isolating itself,

expressed satisfaction with the result.

He said it sent a “very clear signal to the

markets of our determination and our

unity”.

German Chancellor Olaf Scholz said “good

progress” had been made.

“We wanted, together, to limit fluctuations

that could be caused by speculation.”

There was no hiding, however, a general

Franco-German discord that is simmering.

That became more evident when the

two countries delayed a regular meeting

between cabinet ministers.

But France’s Economy Minister Bruno Le

Maire sought to downplay fears of a rift at

the heart of Europe, telling the Frankfurter

Allgemeine Zeitung newspaper that “no one

can split up the Franco-German couple”.

How he said there was a need for a

“strategic redefinition” of bilateral relations

to produce “a new alliance”.

In another sign the two were not in concert,

France did not consult Germany before

agreeing with Spain and Portugal to scrap

a planned gas pipeline that Berlin has been

pushing for years.

November 2022 50


Recession risks in Europe pose

threats to auto sector

Worst is over for the Turkish automotive

industry in terms of supply problems

but now recession risks in Europe pose

challenges to local carmakers, said Cengiz

Eroldu, president of the Automotive

Manufacturers’ Association (OSD), calling

for measures to boost demand in local

market.

“We are more optimistic about supplies

in the final quarter of this year and

believe that we will be affected less from

those problems,” Eroldu told reporters in

Istanbul.

Even though the situation is likely to

improve in 2023, bottleneck issues will

continue, he added.

Exports of the local automotive industry

may decline next year, Eroldu said.

“In the face of this potential threat, local

market should be supported. Problems

with accessing financing should be

resolved. For instance, companies cannot

renew their car fleets due to financing

issues. This is one of the major problems

facing the automotive industry,” he

explained.

Eroldu also called for the reassessment

of tax system on vehicles. Almost all new

cars are subject to 80 percent of special

consumption tax, which impacts the

purchasing power of potential car buyers,

Eroldu explained.

“In order to support the local market

against the contraction risks in the export

markets, some steps should be taken

[regarding financing and tax].”

Local carmakers export nearly 65 percent

of their products to the eurozone

countries.

In January-September, the automotive

industry’s total production increased by 4.4

percent from a year ago to 962,000 with

passenger car output remaining almost

unchanged on an annual basis at 571,000

units, the OSD said.

Total vehicle sales were down 5.6 percent

to 550,000 and passenger car sales

dropped 8.2 percent in the first nine

months of 2022.

Export revenues amounted to $22.7

billion in January-September, marking a

4.6 percent year-on-year increase, but

passenger car exports fell by 3.3 percent to

$6.4 billion.

In September alone, the industry’s output

leaped 20.5 percent, while the local

market expanded 11 percent. Some 45,000

passenger cars were sold , according to

data from the OSD.

Eroldu forecast that the local automotive

industry’s production will increase by

somewhere between 8 to 15 percent in

2022 compared with 2021 to 1.4 million

vehicles and that exports will rise around

11 to 17 percent to 1.1 million.

Meanwhile, carmaker Toyota will invest

some 7 billion Turkish Liras ($377 million)

in its plant in the province of Sakarya to

expand its capacity to produce plug-in

hybrid vehicles and batteries.

With the investment, which is expected to

be completed in four years, the capacity of

the plant will increase to produce 162,000

hybrid vehicles and 44,000 batteries

annually. When the expansion investment

is completed, the plant’s annual production

capacity will rise from 280,000 to 442,000

cars and an additional 52 jobs will be

produced.

According to a decision published in the

Official Gazette, for this investment, Toyota

will receive incentives, including customs

duty exemption, the value-added tax (VAT)

exemption, VAT refund and tax reduction.

November 2022 54


Türkiye as new

gas hub meets

interests of

Moscow, Ankara

Establishing a gas hub in Türkiye would

meet the interests of both Moscow and

Ankara, Kremlin spokesperson Dmitry

Peskov said.

Speaking at a press briefing in Moscow,

Peskov noted that President Recep

Tayyip Erdoğan supported the idea and

gave instructions to immediately start

consultations.

“This initiative, in fact, is in the interests

of both Moscow and Ankara. Therefore,

now all the nuances will be worked out,”

he said.

Peskov added that TurkStream is a wellworking

gas system, as for building the

hub, a lot of questions should be resolved

before making a final decision about its

construction.

Turning to the accident with Nord Stream

gas pipelines in the Baltic Sea, Peskov said

Russia is bumping into a wall, trying to find

out the truth about what happened.

He said Moscow is making intense

diplomatic efforts in contact with

Denmark, Germany and Sweden but sees

unwillingness to interact and to get to the

truth together.

Peskov said the truth about the Nord

Streams accident “will surely surprise

many in these European countries if it is

established and made public.”

“As for possible performers, our

considerations and our preliminary

assumptions are well-known. We cannot

have any new data at the moment, because

we are deprived of the opportunity to

take part in the investigation of this act of

sabotage. Neither the Germans, nor the

Swedes, nor the Danes share information

with us,” he said.

Turning to the situation in Ukraine, Peskov

said Russian President Vladimir Putin has

always been open to peace talks, but the

position of the Ukrainian side has changed,

it has made it law, the impossibility of

peace talks with Russia.

About the faults in the process of Russia’s

partial mobilization, Peskov said “the

lessons are learned” and the situation is

improving.

The spokesperson also said Putin is

monitoring how the mobilization is being

carried out.

As for the date of the end of mobilization,

Peskov said he does not know yet.

Asked about the resignation of U.K. Prime

Minister Liz Truss, Peskov said it is Great

Britain’s internal affairs, and that he does

not expect any changes in London’s policy

on Russia.

“It is not necessary to expect any epiphany

and some political wisdom from anyone

in the countries of the collective West,

including the U.K. Especially in the U.K.,

where people do not actually choose the

current chief executive, he appears as a

result of any party shake-up,” he said.

About the Russians arrested in Germany

and Italy at the U.S. request, Peskov said

Russian diplomats will do everything for

the defense of their interests.

“Of course, we are categorically against and

condemn the practice of such arrests of

Russian citizens,” he stressed.

November 2022 56


Jaguar Land Rover gives

second life to I-Pace batteries

Jaguar Land Rover has partnered with Pramac, a

global leader in the energy sector, to develop a

portable zero-emission energy storage unit powered

by second-life Jaguar I-PACE batteries.

Called the Off Grid Battery Energy Storage

System (ESS), Pramac’s technology - which

features lithium-ion cells from Jaguar

I-PACE batteries taken from prototype and

engineering test vehicles, supplies zeroemission

power where access to the mains

supply is limited or unavailable.

The partnership is the first in Jaguar Land

Rover’s plans to develop new circular

economy business models for its vehicle

batteries. As part of its commitment to net

zero status by 2039, the company will be

launching programmes that deliver second

life and beyond uses for its electric vehicle

batteries. Post-vehicle applications exist

because Jaguar Land Rover’s batteries

are engineered to the highest standards

and can therefore be safely deployed

in multiple low-energy situations once

battery health falls below the stringent

requirements of an electric vehicle.

Second-life battery supply for stationary

applications, like renewable energy storage,

could exceed 200 gigawatt-hours per year

by 2030, creating a global value over $30

billion.

The flagship system has a capacity of up to

125kWh - more than enough to fully charge

Jaguar’s multi-award-winning all-electric

I-PACE performance SUV, or to power a

regular family home for a week. Pramac

directly reuses up to 85% of the vehicle

battery supplied by Jaguar Land Rover

within the storage unit, including modules

and wiring. The remaining materials are

recycled back into the supply chain.

Charged from solar panels, the unit is a

self-contained solution that consists of a

battery system linked to a bi-directional

converter and the associated control

management systems. To showcase its

capability, the unit helped Jaguar TCS

Racing prepare for the 2022 ABB FIA

Formula E World Championship during

testing in the UK and Spain, where it

was used to run the team’s cutting-edge

diagnostic equipment analysing the race

cars’ track performance, and to supply

auxiliary power to the Jaguar pit garage.

An Off Grid Battery ESS will also be

deployed at Jaguar Land Rover Experience

Centre in Johannesburg, South Africa - the

world’s biggest - to help the site cope

with inconsistent power delivery from the

mains.

Andrew Whitworth, Battery Manager,

Circular Economy Team at Jaguar Land

Rover, said: “This announcement is a great

example of how we will collaborate with

industry leaders to deliver our sustainable

future and achieve a truly circular

economy. We’re delighted to be working

with Pramac to use Jaguar I-PACE secondlife

batteries to provide portable zeroemissions

power and supporting Jaguar

TCS Racing this season was an excellent

opportunity to demonstrate what these

units are capable of.”

François Dossa, Executive Director for

Strategy & Sustainability, Jaguar Land

Rover, said: “The transition to an electric

future, with Jaguar becoming all-electric

from 2025 and the first all-electric Land

Rover model expected in 2024, is integral

to our sustainability strategy through

the development of a comprehensive EV

ecosystem from batteries to charging. This

includes our effort to enable technical

and business innovations for battery

reuse for second life applications. Our

collaboration with Pramac is a proof

point in such direction, showing how it’s

possible to supply zero-emission power

through the combination of renewables

and second life batteries. Through their

testing at Valencia, the Jaguar TCS Racing

team have shown how we can inspire the

whole ecosystem to continue to explore

synergies and validate viable solutions for

clean energy.”

November 2022 60


First Bus

partners with

Equipmake to

upgrade York

EV fleet

Awarded a contract to fully convert 12 Optare Versa buses from existing EV Generation one First Bus is partnering

with Equipmake Holdings plc (Equipmake), to repower 12 of the operator’s first-generation electric buses in

York. As one of the UK’s largest bus operators, First Bus has pledged to operate a full zero emission fleet by 2035.

Leading electrification specialist,

Equipmake has been awarded a contract

to convert the 12 First York electric Optare

Versa buses using its pioneering electric

drivetrain at the company’s base in

Snetterton, Norfolk.

Equipmake expects each converted bus to

have a range of 150 miles in all UK weather

conditions, thanks to a larger battery and a

patented HVAC system, extending the life

of existing zero-emissions public transport

for the people of York.

Both single-deckers, such as the Versa,

and double-deckers, can be repurposed to

incorporate Equipmake’s unique, scalable,

modular Zero Emission Drivetrain (ZED).

Equipmake repowers are tailored to specific

requirements provided by the operator,

with service routes simulated to ensure the

optimum battery power level is selected to

secure driving ranges of 150 to 250 miles.

This range is more than sufficient for a

complete duty cycle, allowing buses to be

recharged faster, overnight and operate for

longer during the day.

Equipmake’s repower programme has both

environmental and cost benefits, with each

conversion costing less than half the cost

of a new electric bus. With most buses in

service for 14 years or more, operators can

make significant savings by repowering a

bus halfway through its usable life.

Work is already underway on the first Versa

conversion, and following the successful

trial, 11 more buses will be repowered over

the coming months, with delivery of the

first vehicle scheduled for November this

year.

Ian Foley, CEO, Equipmake, said:

“Repowered buses represent a fantastic

opportunity for operators to help accelerate

the much-needed transition to sustainable

mobility. Together with our new electric

bus, the Jewel E, this technology can

facilitate a significant reduction in air

pollution across the country. We are

delighted that First Bus has chosen to

implement our pioneering technology in 12

of the buses in its York Park & Ride fleet.

This is great news for passengers and for

the people of York, who can look forward

to cleaner air in their city. This agreement

reflects the strong demand we are seeing

for our products, which has, in turn, driven

plans to expand our facility, creating 180

jobs, bringing the total number of staff

employed at Equipmake to 255.”

Garry Birmingham, Director for

Decarbonisation at First Bus, said: “First Bus

has repeatedly demonstrated its ambition

to provide zero-emission transport in the

local communities that we operate in.

The retrofitting of our older electric buses

is another great example of how we can

maximise the lifespan of a bus, beyond 15

years, and in addition, significantly reduce

the embodied carbon associated with

manufacturing new vehicles. This is an

extension of our Zero Emission Mission 2035

target, in support of our wider commitment

to setting ambitious science-based targets

to achieve Net Zero Emissions. These 12

repowered buses use a clever and costeffective

technology, which underlines our

commitment to offer sustainable transport

solutions. Nationally, First Bus is committed

to delivering our zero-emission fleet goal,

and First York’s partnership with Equipmake

is a great example of how we can achieve

this ambition.”

November 2022 62


Power distribution

companies invest

15 bln Turkish Liras

Electricity distribution companies

collectively invested 14.7 billion Turkish

Liras in 2021, up 57 percent from a

year ago, according to a report by the

Association of Electricity Distribution

System Operators (ELDER).

Investments made by 21 distribution

companies in power grids amounted to

11.45 billion liras, capturing the largest

share.

Distribution company Toroslar EDAŞ

increased its investment by 46.2 percent

to 1.49 billion liras, taking the lead among

all distributors. Başkent EDAŞ also boosted

investments by 41.5 percent compared

with 2020 to more than 1.35 billion liras,

followed by Dicle EDAŞ at around 1.35

billion liras.

The companies served 47.3 million

consumers, up from 46.08 million in 2020,

the report said.

Electricity consumption grew from 233.4

TWh (terawatt hours) in 2020 to 253

TWh last year. Industry consumed 111.6

TWh, rising from 99.7 TWh in 2020, while

residents’ consumption increased from

60.13 TWh to 61.34 TWh in 2021.

Some 13.35TWh of electricity was used

in agricultural irrigation last year, up from

10.81 TWh in 2020, and 5.40 TWh of

electricity was consumed for lighting.

The length of distribution lines increased to

1.36 million kilometers, while the number

of transformers rose from 499,736 to

508,880. Electricity distribution companies

directly employed more than 26,000

people, while the number of personnel at

sub-contractors was over 37,000.

Between July 2014 and July 2021,

distribution companies carried out 312

research and development projects.

Natural gas power plants’ share in total

licensed electricity generation grew from

23.6 percent in 2020 to 34 percent in 2021,

while hydropower plants accounted for

17.4 percent of power production, down

from the previous year’s 26.6 percent.

Wind power’s share increased from 8.4

percent to 9.7 percent.

November 2022 64


Gov’t support gives boost to micro export

More and more small and medium-sized enterprises (SMEs) and other

businesses are turning to e-export after the government granted tax

breaks of up to 50 percent to micro exporters last year.

E-commerce volume soared 69 percent to reach 400 billion Turkish

Liras in 2021, while the number of orders placed through those

platforms increased by 46 percent to 3.4 billion, according to data from

the Trade Ministry.

Some 92 percent of e-trade took place within Türkiye, while the share

of e-exports in this ecosystem was 4 percent.

Most of the 500,000 companies, which engaged in e-commerce

activities, sold their products in marketplaces, while around 26,000 of

them used their own websites.

The Trade Ministry recently unveiled a scheme dubbed “distant

countries strategy, which aims to boost Türkiye’s share in global trade.

“Micro exporters can also benefit from what the Trade Ministry offers

to regular exporters. The regulation introduced last year, which offers

tax breaks, will give a boost to micro exporters’ businesses,” said

Mustafa Namoğlu, CEO of ikas.com.

Under the support mechanism, The Trade Ministry help companies

with their marketing activities, opening offices and stores abroad, he

noted. Micro export is the type of export that covers shipments of up

to 300 kilograms and 15,000 euros in value, Namoğlu explained.

Through the system called the Electronic Trade Customs Declaration

(ETCD), the Trade Ministry developed facilitates for small and mediumsized

companies to carry out their export activities, Namoğlu said.

“Under this system, SMEs do not need to register with an exporters’

association or file customs documents with customs brokers. Those

companies can keep their products at the warehouses of authorized

ETCD firms at no additional cost.”

November 2022 68


Hydrogen

Highlight at IAA

Transportation

2022

At the IAA Transportation 2022 in Hanover,

QUANTRON presented the QUANTRON

QHM FCEV hydrogen truck, a world

champion in terms of range. The vehicle

with integrated FCmove-XD 120 kW fuel

cell from Ballard Power Systems (NASDAQ:

BLDP), one of the world’s leading hydrogen

experts, reaches up to 1,500km in the

QUANTRON QHM 44-2000 variant. The

QUANTRON QHM FCEV was unveiled at

the trade fair and more than 250 initial

inquiries and the first orders for the vehicle

have already been placed. These include

Germany with a particularly high demand

in the context of the recent funding

applications as well as Norway for which

the QUANTRON QHM FCEV 44-2000 variant

was specially developed as an operating

area. As a result, QUANTRON ordered 140

fuel cell engines from Ballard to secure the

supply chain, totaling approximately 17MW

with an option to purchase an additional 50

units. The fuel cell modules are expected to

be delivered in 2023 and 2024.

As of September 2021, QUANTRON

and Ballard are engaged in a strategic

partnership to accelerate the development

of heavy duty hydrogen vehicles. Resulting

from this strong cooperation, Ballard

has made a minority equity investment

in Quantron AG as part of QUANTRON’s

financing round of up to 50 million euros.

Ballard’s investment proceeds will be used

by QUANTRON to develop their truck fuel

cell vehicle platforms, under the terms of

a Joint Development Agreement. Ballard

will be the exclusive fuel cell supplier to

QUANTRON for these platforms.

The zero-emission fuel cell electric vehicle

platforms developed by QUANTRON

will integrate Ballard fuel cell products

for various truck applications in Europe

and the US. QUANTRON’s initial market

focus is Germany, where their new 44t

fuel cell truck has been unveiled at IAA

Transportation 2022. In the next step, a

total of four FCEV models are planned in

cooperation with Ballard Power for 2023.

“We are seeing growing global demand

and policy support for zero emission

transport as companies strive to

reach decarbonization targets. This

collaboration accelerates our entry into the

European truck market and aims to have

QUANTRON’s initial hydrogen-powered,

zero emission trucks on the road in the

next 18 months,” said Randy MacEwen,

CEO, Ballard Power Systems.

“QUANTRON is thrilled to advance our

strategic partnership with Ballard. We see

compelling mobility use cases where fuel

cell engines are the most suitable zero

emission solution, given the power and

range requirements of the application,”

commented Andreas Haller, founder, and

Chairman of Quantron AG.

Michael Perschke, CEO of Quantron AG

added, “We want to offer our customers

the best solution possible, and our

continued collaboration with Ballard allows

us to advance our environmentally friendly

offerings to meet our customers’ needs,

including range, payload, and refueling

time, with an increasingly competitive total

cost of ownership. As a next step we need

to solve the chicken and egg situation and

form multiple green hydrogen production

& fueling partnerships.”

Pursuant to its strategic investment,

Ballard will have the right to appoint a

representative to QUANTRON’s Board of

Directors.

November 2022 70


Turkish consumer confidence rises for

4th straight month in October

Türkiye’s consumer confidence index rose by 5.3% month-over-month to

76.2 points in October, official data showed.

The index thus continued a rebound from a record low of 63.4 in June

despite a continuing surge in inflation. It was up from 72.4 points in

September, the Turkish Statistical Institute (TurkStat) said.

The biggest improvement in confidence was seen in the financial

situation of households at present, which rose 8.4% from a month earlier,

though it remained at the low level of 57.5 points.

The index for the assessment of spending money on durable goods over

the next 12 months rose 2.3% to 93.1.

The general economic situation expectation index increased 5.3% to 77.9,

while the financial situation expectation of households over the next 12

months was up 6.7% to 76.2.

The index is a vital gauge of the economy’s overall situation, indicating

consumer sentiments on financial standings and the general state of the

economy, along with expenditure and saving tendencies.

A confidence level below 100 reflects a pessimistic outlook, while a

reading above 100 indicates optimism.

Confidence plunged in 2020 due to the fallout from the COVID-19

pandemic before a brief rebound. It took another dive in October of last

year ahead of a steep decline in the Turkish lira in December.

November 2022 72


Everrati Advanced Technologies

to electrify Land Rover models

with Hobson Industries

Everrati Automotive Limited (Everrati),

the leading global technology company

specialising in the redefining and

futureproofing of automotive icons,

announced a new partnership between

Everrati Advanced Technologies (EAT)

and Hobson Industries Limited, providing

its industry-leading EV expertise in the

production of electrified Land Rover

vehicles.

An internationally-renowned engineeringbased

company established in 1987 by

Peter Hobson – who served as a Royal

Navy Naval Weapon Engineer – Hobson

Industries offers through-life support for

heritage Land Rover models, encompassing

everything from parts supply to full vehicle

builds.

These include armoured and soft skin

variants of Land Rover models, all of which

have had ICE powertrains up until now.

As part of the new collaboration, Hobson

Industries’ vehicle builds will benefit from

EAT’s state-of-the-art electric powertrains

– already proven in Everrati’s range of

electrified icons, which include a Land

Rover Series IIA. The electrified models

developed with Hobson Industries will be

used for security and defence projects.

Drawing upon Everrati’s unique

combination of engineering experience;

amassed from more than 50 years of

collective expertise working within

automotive OEMs, EAT was established

earlier in 2022 following rapidly growing

demand for Everrati’s high-end EV

solutions.

Its product line-up includes the redefined

and electrified Land Rover Series IIA, which

has been developed at the company’s

technical centre in Upper Heyford,

Oxfordshire, and incorporates a brand-new

EV powertrain courtesy of the company’s

expert team of industry specialists from

world-leading OEMs. The off-roader’s

60kWh battery pack has a power output of

150bhp and 300Nm of torque reinvigorates

the car’s original character.

Founder and CEO of Everrati, Justin Lunny,

said: “We are delighted to announce this

new partnership with Hobson Industries, a

globally renowned expert in every aspect

of through-life management of classic

Land Rovers. One of the most ubiquitous

vehicles in active service in the security

and defence sectors around the globe,

these industries are increasingly embracing

electrification especially where quiet,

stealth vehicles are required.”

“Everrati Advanced Technologies is expertly

placed to support the transition of these

older vehicles to a clean and sustainable

future. The combination of Hobson

Industries’ unparalleled reputation –

and its connections to the security and

defence sectors – with EAT’s state-ofthe-art

EV propulsion systems is unique,”

added Lunny.

Founder and Managing Director of

Hobson Industries, Peter Hobson, said:

“Few companies can match Hobson

Industries’ ability to offer through life

support management and development

of Land Rover heritage vehicles in both

military and civilian platforms. Across the

markets we serve in the UK and globally,

we have established close relationships

with the people that trust and depend on

us. I am delighted to partner with Everrati

Advanced Technologies. I have always said

that thanks to us, the Land Rover need

never die. With EAT that statement has

never been truer.”

Utilising proven Everrati automotive EV

propulsion system platforms as a starting

point, EAT provides consultation on a suite

of electrification solutions for commercial

clients, from initial concept, analysis

services and feasibility study to complete

turnkey EV powertrain provision. In

addition, EAT provides provide software

and IP development for bespoke customer

requirements.

Initially focused on the low-volume

specialist and luxury vehicle sector,

EAT provides design, development,

engineering, and production consultancy

services, enabling customers to create

almost any bespoke EV powertrain

solution they desire. Whether a redefined

version of an existing vehicle or an

entirely new electric propulsion system

application.

November 2022 76


Stellantis group

may end China

production

Car giant Stellantis may stop building

vehicles in China, chief executive Carlos

Tavares said, citing building tensions with

the West as a deterrent to investment there.

“Our strategy anticipates the possibility of

geopolitical tensions,” Tavares told reporters

at the Paris Motor Show.

“There have already been several times

where we’ve been thrown out of a country

when Western sanctions are imposed...

can we be sure that the stability of

relations between China and the world is

guaranteed?” he added.

Stellantis has already dropped a joint

venture that built Jeep SUVs in China after

failing to take a controlling stake, and is in

talks with local partner Dongfeng about its

Peugeot and Citroen brands. Unlike German

rival Volkswagen, which sold three million

cars in China last year, the historic massmarket

French vehicles have never broken

through there.

“We’re still selling Jeep and Alfa Romeo

vehicles built outside China very profitably”

in the world’s largest car market, Tavares

said, suggesting the same model could work

for Peugeot and Citroen.

“If we take our strategy all the way, we don’t

need any factories in China. In a world of

growing tensions, we don’t need to produce

vulnerabilities,” he added.

Japanese and German producers have

largely stayed away from the Paris Motor

Show. But Asian manufacturers like China’s

Ora and BYD or Vietnam’s VinFast have

turned out in force, hoping to bring lowercost

electric vehicles to European markets.

Stellantis aims for revenues of 20 billion

euros ($19.6 billion) in China by 2030 with

its 14 brands, but Tavares complained of

unequal treatment from Beijing.

“The red carpet is rolled out for Chinese

manufacturers in Europe, and that’s not

how we’re welcomed in China,” he said.

“Import taxes on vehicles coming from

China should be symmetrical with those

applied to Western vehicles in China.”

The Stellantis boss added that “we are in a

world that’s fragmenting, states are trying

to produce bubbles.

“If we think these bubbles will close at some

point, we’ll have to sell in Europe vehicles

that are made in Europe. We will adapt,” he

added.

November 2022 78


Tesla quarterly

profit jumps, but

revenues miss

estimates

Tesla reported another quarter of

sparkling earnings growth, but shares

fell amid questions over the resilience

of electric vehicle demand, CEO Elon

Musk’s embattled Twitter transaction

and other issues. The electric vehicle (EV)

maker scored a more than doubling of

profits in the third quarter to $3.3 billion

on increased auto deliveries. But shares

retreated in after-hours trading after the

company reported revenues of $21.5

billion, a 56% increase over the year-ago

period, but about $500 million below

analyst forecasts. The company flagged

battery supply chain bottlenecks as a

constraint on EV growth and noted that

logistics volatility was an “improving”

challenge.

“Knock on wood, it looks like we’ll have

an epic end-of-year,” Musk said during an

earnings call.

“The factories are running at full speed and

we’re delivering every call we make.”

The results follow Tesla’s disclosure earlier

this month that deliveries and production

grew solidly in the third quarter after diving

in the prior period due to a coronavirusrelated

factory closure at the company’s

Shanghai plant.

The automaker has avoided setting specific

annual delivery targets, but analysts have

benchmarked a target of about 1.4 million

for all of 2022.

Tesla is on pace for a 50% increase in

production this year but could fall shy of

that goal when it comes to getting the

cars to buyers, chief financial officer Zach

Kirkhorn said on the call.

Tesla is working on smoothing out a “crazy

delivery wave” at the end of each quarter,

Musk told analysts.

“There weren’t enough boats; there

weren’t enough trains; there weren’t

enough car carriers to actually support the

wave, because it got too big,” Musk said.

Tesla watchers are expecting a strong

fourth quarter with a restored Shanghai

factory and the ramp-up of plants in Texas

and Germany.

Immune to inflation?

But COVID-19 remains a wildcard in light

of China’s continued adherence to its zerotolerance

approach to fighting the virus.

Another question concerns whether Musk’s

company will continue to remain immune

to macroeconomic concerns, especially

inflation.

The cheapest version, the Tesla Model

3, currently lists for about $48,500. With

U.S. inflation showing no signs of easing,

analysts wonder whether demand for the

pricey vehicles will remain robust.

Shares of Tesla have dropped more than

16% since September 30, shortly before the

company released its third-quarter delivery

figures and ahead of Musk’s October 4

revival of his bid to acquire Twitter and

head off a trial in which he was being sued

by the company for breach-of-contract.

In the most recent move in the takeover

saga, a Delaware judge suspended litigation

between the parties to allow time to

finalize the $44 billion transaction.

But the judge has said that if the deal does

not close by October 28, the trial could be

rescheduled for November.

“I’m excited about the Twitter situation,”

Musk said during the earnings call.

“I think it’s an asset that has just sort

of languished for a long time but has

incredible potential, although obviously

myself and the other investors are

overpaying for Twitter right now.”

Some analysts see the drop in Tesla shares

– during a period that saw the S&P 500

advance – reflects worries that Musk

will sell more Tesla shares to finance the

purchase of the social media company.

“Despite Elon Musk’s Twitter distractions,

Tesla has been fixated on identifying

and mitigating disruptive themes in the

automotive sector,” said GlobalData analyst

Daniel Clarke.

“That’s why its results show it to be one

step ahead of competitors.”

The analyst warned, however, that reliance

on the China market is potentially a

massive “bump in the road” for Tesla as

geopolitical rivalry heats with the United

States and Chinese electric car maker BYD

approaches in its “rearview mirror.”

Tesla shares were down more than 6% to

$208.16 in after-hours trading, despite

Musk saying there is a potential for the

company to buy back billions of dollars

worth of shares.

November 2022 80


Türkiye eyes more foreign shoppers

The Culture and Tourism Ministry will work

on new strategies for boosting tourism in

Türkiye via ad campaigns and promotional

videos centered on attracting foreign

shoppers to the country, says Sinan Öncel,

chair of the United Brands’ Association

(BMD).

As domestic consumption sags, local

retailers are turning to foreign shoppers

and they benefit from a rebound in

international tourist traffic.

“In terms of the U.S. dollar, foreign tourists’

spending increased by 12 percent. We had

talks with the Culture and Tourism Ministry

to raise the issue of promoting the retail

sector and shopping in Türkiye. Officials

from the ministry agreed,” Öncel told

business daily Dünya.

Öncel expects officials to begin work for

shopping tourism in the coming days. “One

of the main reasons to visit Türkiye for

foreigners is now shopping,” he added.

In terms of volume, sales declined but

revenues rose due to the price increases,

and this increase is partly due to foreign

shoppers, Öncel said. “We need to keep

tourism alive.”

He noted that both foreign tourist arrivals

and per capita spending increased, and this

has a positive impact on the retail industry.

Foreign tourists’ spending compensates for

weak demand from local consumers, Öncel

said, noting that in some regions sales to

foreign shoppers account for 50 percent of

all sales.

The number of tourists increased

significantly, said Hasan Fırat, head of an

association, which represents businesses in

Istanbul’s famous Grand Bazaar.

Fırat recalled that shops at Grand Bazaar

closed for months during the pandemic,

which increased businesses’ debts. “Thanks

to foreign tourists, businesses are now

able to reduce their debts and even make

profits,” he said.

Shares of foreign shoppers in total sales

increased to as much as 60 percent,

according to İzzet Stamati, the chair of the

Registered Brands Association (TMD).

“Saudis top the lists, followed by Kuwaitis,

Iranians, Russians and Azeris,” he told

the daily. However, Stamati said that

more needs to be done to attract more

people since Türkiye is not among the top

shopping destinations. In 2019, some 1.6

million foreigners came to Türkiye only for

shopping, according to the daily, which

cites data from the Turkish Statistical

Institute (TÜİK). However, in the first half

of 2022, the number of foreign shoppers

climbed to an all-time high of 1.2 million. In

2017, this figure was 1.5 million, declining

to 1.4 million in the following year.

November 2022 84


President Erdoğan inaugurates plant for

Türkiye’s 1st national car

“We are witnessing fulfillment of 60-year dream into reality... Wherever you go you can see

Turkish brands... Togg will grace the roads of many countries around the globe as well, as a

prestigious Turkish brand,”

President Recep Tayyip Erdoğan

inaugurated the long-anticipated massive

manufacturing plant that will be building

Türkiye’s first domestic car brand, Togg.

The Turkish public witnessed another

milestone, as the opening ceremony in the

northwestern province of Bursa, marked

the official start of the mass production for

the car that is expected to hit the road by

the end of 2023’s first quarter.

The event, which has also seen Togg’s

first all-electric SUV being rolled off the

assembly line with President Erdoğan in the

driver’s seat, puts Türkiye and President

Erdoğan closer to fulfilling a long-held

dream of building the country’s first

national automobile.

The Turkish leader has long pushed

industrialists to build a domestic

automobile as part of his vision for making

Türkiye an economic powerhouse.

“We are witnessing fulfillment of 60-year

dream into reality... Wherever you go you

can see Turkish brands... Togg will grace the

roads of many countries around the globe

as well, as a prestigious Turkish brand,”

Erdoğan said.

“Everyone is wondering when Togg will

grace the roads... We will see Togg on

our roads at the end of the 1st quarter of

2023,” he announced. “Our citizens will be

able to pre-order Togg models near the end

of February... (At which point) the pricing

will also be announced.”

The vehicle is being produced by a

consortium of five Turkish companies called

the Automobile Initiative Group of Türkiye,

or Togg, in cooperation with the Union of

Chambers and Commodity Exchanges of

Türkiye (TOBB).

Construction of Togg’s engineering, design

and production facilities began in mid-

2020, almost two years after President

Erdoğan unveiled the consortium, which is

led by former tech-giant Bosch executive

Mehmet Gürcan Karakaş.

The plant has been built on an area of 1.2

million square meters (12.92 million square

feet) in Bursa’s Gemlik district.

Bursa is dubbed the country’s automotive

capital as it is home to manufacturing

November 2022 86


Togg will be manufacturing

five different models – SUV,

sedan, C-hatchback, B-SUV

and B-MPV – through 2030.

Mass production of the SUV

will be followed by the sedan.

The brand aims to produce

1 million vehicles across five

different segments by 2030.

facilities of many foreign brands, including

the Turkish-French joint venture Oyak

Renault and Tofaş, a joint venture of

Türkiye’s Koç Holding and Italian-American

carmaker Fiat Chrysler.

In December 2019, Erdoğan unveiled SUV

and sedan prototypes of Togg, both fully

electric and C-segment models. The SUV

is expected to hit the market in the first

quarter of 2023 and will be the first electric

sport utility vehicle produced in continental

Europe by a nontraditional manufacturer.

Togg will be manufacturing five different

models – SUV, sedan, C-hatchback,

B-SUV and B-MPV – through 2030. Mass

production of the SUV will be followed

by the sedan. The brand aims to produce

1 million vehicles across five different

segments by 2030.

The car was designed by Italy’s Pininfarina

design company, which has produced

models for Ferrari and California-based

electric carmaker Karma.

Togg has opted for advanced lithium-ion

battery technology company Farasis as

its business partner for the battery. The

homegrown car is expected to reach 80%

charge in under 30 minutes with fast

charging. It will have a range of between

300 kilometers to 500 kilometers (186

miles to 310 miles).

The track tests showed it will take the car

about 7.6 seconds to accelerate from zero

to 100 km/h with 200 horsepower, and

under 4.8 seconds with a 400-horsepower

engine.

November

87 2022


Tesla slashes China prices by up to

9% as analysts warn of ‘price war’

Tesla has cut starter prices for its Model

3 and Model Y cars by as much as 9%

in China, reversing a trend of increases

across the industry amid signs of softening

demand in the world’s largest auto market.

The price cuts, posted in listings on the

electric vehicle (EV) giant’s China website,

are the first by Tesla in China in 2022, and

come after Tesla began offering limited

incentives to buyers who opted for Tesla’s

insurance.

The price cuts come after Tesla Chief

Executive Elon Musk said that “a recession

of sorts” was underway in China and

Europe and Tesla said it would miss its

vehicle delivery target this year.

Musk told analysts that demand was

strong in the current quarter and said he

expected Tesla to be “recession-resilient.”

China Merchants Bank International (CMBI)

said Tesla’s price cuts underlined the

growing competitive risk for EV makers in

China, with industry-wide sales projected

to slow into 2023.

“The price cuts underscore the possible

price war which we have been emphasizing

since August,” said Shi Ji, an analyst with

CMBI.

Data showed retail sales in China grew

2.5% in September, below the expected

3.3% rise and less than half of August’s

5.4% growth.

Analysts are warning of a growing car

inventory glut for autos in China, where

auto sales growth slowed in September

while EV sales rose at their slowest pace in

five months.

The U.S. automaker and several Chinese

rivals have hiked prices several times since

last year amid rising raw material costs. But

Tesla has also regularly adjusted the prices

of its cars in China, including reductions,

reflecting government subsidies.

Tesla told Reuters it was adjusting prices

in line with costs. Capacity utilization at its

Shanghai Gigafactory has improved, while

the supply chain remains stable despite the

impact on the economy of China’s stringent

zero-COVID restrictions, leading to lower

costs, it said.

The starting price for the Model 3 sedan

was reduced to 265,900 yuan ($36,727)

from 279,900 yuan, while that for the

Model Y sport utility vehicle was cut

to 288,900 yuan from 316,900 yuan,

the product prices listed on its Chinese

website showed. The average price for

a new Tesla in the United States, the EV

maker’s largest market, has been climbing

steadily since last year and was just

under $70,000 in August, according to

research company Kelley Blue Book. Tesla

upgraded its Shanghai factory earlier this

year in a development that brought the

factory’s weekly output capacity to around

22,000 units compared with levels of

around 17,000 in June, Reuters previously

reported. Tesla delivered 83,135 Chinamade

EVs in September, an 8% increase

from August, and set an output record

for the Shanghai factory since production

began in December 2019.

CMBI analysts warned that 2023 would

bring more competition to the EV sector,

saying that it expected to see sales growth

for EVs and hybrids on a combined basis to

drop below 50%. Tesla is currently China’s

third best-selling EV maker after BYD Motor

and SAIC-GM-Wuling, and is the only

foreign player in the top 15 list published

by the China Passenger Car Association.

CMBI said it expected that other

automakers would need to cut prices

on battery-electric and plug-in hybrid

cars, following Tesla’s lead because of a

projected increase in production capacity

next year.

November 2022 88


R&D spending rises to 82 billion Turkish Liras

Gross domestic expenditure on research

and development (R&D) increased by 26

billion Turkish Liras or 49 percent from

2020 and reached 81.8 billion Turkish Liras

($9.1 billion) last year, according to data

from the Turkish Statistical Institute (TÜİK).

The share of R&D expenditures in the

country’s GDP increased from 1.09 percent

two years ago to 1.13 percent in 2021.

This was 0.8 percent in 2008, rising to

0.88 percent in 2015. Per capita R&D

expenditure was 974 liras, or $108, in

2021, up from 650 liras, or $94 in 2020,

data also showed. The largest spenders

were financial and non-financial companies

which accounted for 70.7 percent of all

R&D expenditures. Higher education

ranked second at 23.7 percent, while the

share of the general government, including

private non-profit organizations, in those

expenditures was 5.6 percent.

Among the R&D expenditures, personnel

expenditures constituted the largest

item at 49.5 percent, followed by other

current costs at 42.3 percent and capital

expenditures at 8.2 percent.

On the funding side, financial and nonfinancial

corporations financed 62.4

percent of the R&D spending, while the

general government’s share was 25.1

percent. Funds from abroad accounted

for 1.9 percent and higher education

institutions’ share was 10.6 percent.

Nearly 222,000 were employed in R&D

activities on a full-time basis. Of those

67.4 percent were employed by financial

and non-financial corporations and 28.2

percent in higher education institutions.

Some 4.4 percent were employed in

general government including private nonprofit

sector in 2021.

Female full-time employees accounted

for 32.1 percent, or 71,300 people, of all

R&D personnel, with higher education

institutions capturing the largest share at

45.7 percent.

Around 31 percent of all R&D personnel

had PhD and 24.3 percent masters’

degrees.

Ankara took the lead with a 31.9 percent

share in all R&D spending, followed by

Istanbul at 28.5 percent and the region,

covering the northwestern industrial

provinces of Kocaeli, Sakarya, Düzce and

Bolu, at 9.8 percent.

Most of the R&D expenditures was

carried out by enterprises engaged in

high-tech activities. R&D spending of

companies engaged in high-tech activities

in the manufacturing sector amounted

to 32.8 billion liras or 47.5 percent of all

expenditure in this sector.

November 2022 92


BMW to invest $1.7 bn in electric car production in US

German carmaker BMW will invest $1.7

billion in the production of electric vehicles

in the United States.

The plan includes $1 billion towards

expanding the company’s Spartanburg US

manufacturing plant and $700 million for a

new battery assembly facility, BMW said in

a statement.

“The BMW group continues the roll-out

of its electromobility plan with a new

investment in the US,” the company said.

The Spartanburg plant in South Carolina is

already BMW’s biggest factory, producing

1,500 BMW X vehicles a day.

The new high-voltage battery assembly

facility will be located in Woodruff, South

Carolina, BMW said. The German group

has also signed an agreement with Chinese

battery manufacturer Envision AESC, which

will “build a new battery cell factory in

South Carolina” with an annual capacity of

up to 30 GWh. The group plans to produce

at least six fully electric BMW X models at

the Spartanburg plant by 2030.

The aim is for the factory to become

“a major driver for our electrification

strategy”, said Oliver Zipse, chair of BMW’s

management board.

The move is part of a shift towards

electrification at BMW and in the German

car industry as a whole.

BMW already sells the i3 model but it has

nonetheless lost market share to Tesla.

November 2022 94


Having launched the first MEYLE HD part 20 years ago, the manufacturer based in Hamburg is now

transforming its MELYE HD steering and suspension parts into the first climate-neutral product range in the

independent aftermarket. The company aims to be climate-neutral by 2030.

MEYLE unveils its first

climate-neutral product range

The company has been working to improve

the carbon footprint of MEYLE HD steering

and suspension parts since 2019 and has

managed to significantly reduce production

emissions with energy efficiency measures

and the use of wind power. MEYLE is now

taking the next decisive step and working

with ClimatePartner to compensate

for the CO2 emissions associated with

MEYLE HD parts in the steering and

suspension category. These parts are

largely manufactured at the company’s

own plant in Türkiye, which like the MEYLE

headquarters in Hamburg has been

certified carbon-neutral since 2021.

The concept behind MEYLE HD parts has

always been sustainable: repairing rather

than replacing the entire unit – with spare

parts more durable than the original.

“That’s good. But for us, it’s not enough.

We want to be a driving force in a very

heterogeneous and international sector,”

says Florian Gaertner, MEYLE Corporate

Responsibility Manager. “That’s why we

committed ourselves to the UN Global

Compact in 2021, are systematically

accelerating our sustainability activities and

expanding them step by step.”

Sustainability management now comprises

a whole host of projects across all company

departments. Our most important aim is

to offer a product range that is entirely

climate-neutral by 2030, with a key focus

on avoiding CO2 emissions. “We’re doing

everything in our power to make this

happen and will only compensate for

remaining emissions with investments in

sustainable projects”, says Gaertner.

The company’s headquarters and SIO

production facility for steering and

suspension parts are already certified

carbon-neutral. The next step is to make

all the other sites carbon-neutral. MEYLE

is also making an effort to reduce its

suppliers’ CO2. By using CO2-reduced

materials such as “green aluminium and

steel”, the company is planning to further

reduce CO2 in the future. Thanks to a

switch in packaging and shipping materials

in logistics, the company has already

reduced its use of plastic by around four

tonnes a year, with further reductions still

to come. Sustainability and the ongoing

mobility transformation are very important

to MEYLE, which is why, in 2016, the

company invested in the infrastructure

necessary to allow employees and guests

to charge their electric vehicles.

Motorsport also generates important

information about how the parts perform,

allowing MEYLE to further develop them

and make them even more durable. MEYLE

has set its sights firmly on new drive

technologies and, since last season, has

sponsored the first ADAC Opel e-Rally.

November 2022 96


Theon Design reveals CHI001, its latest bespoke commission

Theon Design has revealed its latest bespoke development, a fully restored and enhanced Porsche 911

(964)-based commission for its first customer in Chile, featuring a lightweight carbon body paired with

semi-active suspension and a 400bhp 4.0-litre flat six.

Combining ‘OEM+’ design, quality

and manufacturing techniques with

uncompromising attention to detail CHI001

is, like all Theon creations, an example

of the company’s world-class design and

engineering expertise, delivering on the

company’s objective of distilling and

enhancing the essence of the air-cooled

911.

Theon Design is the brainchild of Adam

Hawley, a Porsche obsessive with more

than two decades of automotive design

experience at prestigious OEMs such as

BMW, JLR, Lexus and Lotus, who also

helped design Airbus A380 luxury interiors.

Under Hawley, Theon Design seeks to make

each car it creates lighter, more powerful

and even more visceral to drive than the

original on which it is based, while at

the same time paying careful homage to

Porsche’s methodology and engineering

ethos.

“Our intent is clear,” explains Hawley.

“We apply an OEM-grade approach

with Computer-Aided Design (CAD) and

manufacture to enhance a classic Porsche,

delivering the best possible quality. At

the same time, we are careful to honour

Porsche’s heritage and engineering ethos;

we’re totally focussed on lightweight

construction and delivering truly engaging

driving dynamics. CHI001 pushes this to

new heights and is fantastic example of

what Theon Design is capable of.”

The company is based in the UK’s

‘Motorsport Valley’ in Oxfordshire, home

to an array of auto and racing technology

companies and technicians – the ideal

location in which to assemble a small team

of passionate engineers and establish

relationships with trusted suppliers.

High-tech lightweight body

As with all of Theon Design’s bespoke

commissions, CHI001 is based on a 911

(964) that has been stripped back and fully

restored, using numerous design cues from

Porsche models past and present.

CHI001 is the first Theon Design creation to

feature carbon fibre for the vast majority of

the body, with the lightweight composite

material used for the roof, bonnet, engine

lid, spoiler, bumpers and sill covers, while

only the doors are steel – to aid side impact

protection. Lightweight black Kevlar is then

used for the wheelarch liners.

For the bespoke body, each component

was digitised and modelled in 3D design

software to ensure ultimate precision and

perfect panel fit – enabling Theon to tailor

individual details to the customer’s exact

specification.

While CHI001 is very much cutting-edge

in its construction, it also features an

evocative nod to the past with its custom

Viola Metallic paint, a colour first seen on

the 30th Anniversary Porsche 911 (964)

of 1993. CHI001’s 17” Fuchs style wheels

feature body-coloured centres, with

champagne-coloured petals and outer rims,

while the special paint is complemented by

Noble Chrome brightwork.

Theon’s unflinching attention to detail is

also demonstrated by the Royal Purple

Porsche script and strips, which match the

November 2022 98


ake callipers and interior leather. “At

Theon, attention to detail is everything,”

explains Hawley. “You can see this not

only with the stunning exterior of CHI001,

but also wherever you look under the

skin. Every single component on the car

is treated with the same degree of focus,

whether visible or not.”

Under the skin

Theon’s determination to elevate the onroad

performance of each commission is

reflected in the painstaking analysis and

optimisation of every element of the car;

each component scrutinised with a view

to enhancing performance, quality and

aesthetics.

Such an approach is evident all over

CHI001, where the driving experience is

made even more engaging and capable,

thanks to the fitment of Theon’s hydroelectric

power-steering, a switchable

exhaust and RS-spec semi-active

suspension from specialists TracTive, which

provides independent damping control and

ensures all road surfaces are handled with

aplomb. The driver can switch between

5 tailored damper modes, selected via a

milled aluminium rotary switch integrated

into the centre console – lending CHI001

great breadth of dynamic ability.

CHI001 uses TracTive’s ‘Active Controlled

Electronics’ (ACE) system, which offers

completely independent damping -

with active roll and pitch control for

optimised suspension performance in

all driving scenarios. TracTive’s hightech

system ensures CHI001 remains

stable and unruffled under braking, with

improved composure on corner entry,

greater precision through the apex, and

transformed traction when accelerating out

of a corner. Road undulations are perfectly

managed by each individual damper,

maximising compliance and grip at all

times. Inside each TracTive ACE damper is

a patented Dynamic Damping Adjustment

(DDA) valve controlled by a sensitive multiaxis

g-sensor and advanced algorithm,

has been developed across decades of

on-road and on-track testing. With a

dynamic proportional valve operating

as a bypass, the TracTive damper units

have an especially large range of damping

adjustment, and are capable of reacting in

an industry-leading 6-10 milliseconds. With

such lightning responses, TracTive ACE

system’s performance is elevated far above

that of conventional damper systems; grip

levels in all conditions are vastly improved,

maximising each tyre’s contact patch.

CHI001’s braking system is also heavily

uprated with carbon discs and pads

delivering tremendous, fade-free stopping

power. At the rear of the car, an active

wing sits atop the engine cover – ensuring

perfect aero balance whatever the speed.

Elsewhere, a custom aero grade wiring

loom with MoTeC Power Distribution

Modules further helps reduce weight, while

a modern, lightweight air-conditioning

system with dual condensers is fitted at the

front of the car – shedding even more kilos

and improving weight distribution. With all

fluids and a full tank of fuel, CHI001 weighs

just 1164kg.

The famous aircooled flat six –

enhanced

Theon Design offers a wide choice of aircooled

flat-six-cylinder engine options,

encompassing naturally-aspirated units

that range in capacity from 3.6 to 4.0 litres,

with supercharging or turbocharging also

possible. CHI001 was commissioned

with a naturally-aspirated 4.0-litre motor.

Producing 400bhp and 350 lb ft of torque,

and fitted with a single mass flywheel,

it majors on throttle response and aural

thrills with bespoke independent throttle

bodies developed with Shropshire-based

Jenvey Dynamics, paired with Theondesigned

trumpets, all of which add to the

visceral intake noise. A carbon fibre shroud

aids engine cooling and further enhances

under bonnet aesthetics.

November

2022

100


EU warned

Germany about

Hamburg

port Chinese

investment

The European Commission warned

Germany months ago against Chinese

investment in Hamburg’s port, a source

close to the matter told AFP on Oct. 22, as

Chancellor Olaf Scholz faced criticism for

reportedly backing the transaction.

The source confirmed information in a

report by the Handelsblatt daily that the

EU executive had in spring given Berlin a

thumbs-down to Chinese shipping giant

Cosco taking a 35-percent stake in the port

under a deal agreed last year but not yet

authorized.

The commission was worried that sensitive

information about activity in the port - the

third busiest in Europe - could be relayed to

China’s government.

Its recommendation was non-binding, with

Germany having the final say on the deal.

German broadcasters NDR and WDR

reported that Scholz’s office is planning

to approve the deal despite opposition

from six different ministries in Germany’s

coalition government.

According to the report by NDR and WDR,

the deal would effectively be approved

automatically if the government does not

intervene by the end of this month.

Scholz, who was mayor of Hamburg

between 2011 and 2018 before becoming

vice chancellor and then chancellor,

announced after attending an EU summit

on Oct. 21 that he would visit China in

November.

He said that “nothing is decided” about the

Chinese investment, but noted there were

Chinese stakes in other European ports.

The EU’s stance against China, however,

has hardened since those other stakes

were made.

At the EU summit, leaders agreed they did

not seek confrontation with China, wanting

its cooperation on climate change and

other issues.

But they also expressed discomfort at

China’s increasing assertiveness in many

areas, including in trade, and its bond with

Russia, which is waging war in

November 2022 102


Kross launches new products

Kross, contunues serving the automotive sector with 110 different and new products,

sends its products all over Türkiye and 80 different countries in the world.

Prefix; Power&Protection

One of the leading oil manufacturers in the sector,

Prefix engine oils have made a name for itself with the

quality of it’s products with the experience brought by

its deep-rooted past, it has always adopted the principle

of customer satisfaction By following the developing

technology closely, it has reflected this to its RED studies

and provided Forward - looking studies.

Having made a name for itself with its distributorships

more than 20 countries abroad, Prefix engine oils continue

to make a name for itself with its quality in the world.

Blue Oil; Best choice of oil

Thanks to its additional investment, and quality oriented production

over the years, it has gained superiority over its competitors in

the national and international markets and has become one of the

most preferred brands. It has a distributor network in more than

30 countries in the world thanks to its quality, capacity and reliable

service.

The Castle of your engine

Castle motor ails, one of the leading engine oil Producers in

Türkiye, makes great contributions to the countrg’s economy

with its domestic and international connection.

It maintains its place at the top with the projects it has

implemented and the work examples it has setting customer

satisfaction as its most important mission, Castle has provided

its customers with the highest value and quality, thus

providing complete customer satisfaction.

November 2022 104


The goal is to

build a global

brand!

Osman Öğüten, General Manager of MC Filter

MC Filter, which has succeeded in being the 46th of Türkiye’s Top 100 Fastest Growing

Companies in 2021, continues its production with the dream of building a global brand.

Founded in Samsun in 2008 by

two brothers, MC Filter produces

approximately 2000 types of filters in

the Automotive and Industrial group

with its professional staff. Declaring

that they continue their activities

in their new production facilities

in March, Osman Öğüten, General

Manager of MC Filter answered our

questions about production, export

and other their activities.

In line with this goal, with the

understanding of quality, continuous

improvement and after-sales support;

it produces filters for Industrial use

and automotive industry with its

expert staff.

First of all, can you tell us about

your brand?

The primary goal of MC Filter is

to ensure customer satisfaction

and gain the trust of the customer.

November 2022 106


What distinguishes yourself from your

competitors?

MC Filter aims to offer quality products to

its customers at competitive prices. In this

direction, MC Filter has a rapidly increasing

product variety with its molding workshop,

metal forming workshop and plastic

injection workshop, quality reliability

thanks to its laboratory, professional

production techniques with a staff of 36

engineers and with its innovation skills

through 15-person R&D team.

MC Filter distinguishes itself from its

competitors by delivering quality products

to its customers in the fastest way with

competitive prices.

What about your export activities?

What are your goals?

Our company exports to 35 countries,

especially European countries. We export

approximately 35% of our production. Our

goal is to proudly represent our country all

over the world as a strong global brand.

Could you inform us about your new

production facility?

Our company produces approximately 2000

types of filters with its 2 facilities of 7500

m² and a staff of 340 people in a total open

area of 15.000 m².

We now have a more integrated facility by

using the technological investments we

made with our new facility. We are also

in the approval phase for our R&D Center

application. In order to become an original

equipment manufacturer, we quickly make

up for our shortcomings.

Our approximate production capacity in

the fields we describe as Automotive and

Industrial is 700,000 units/month.

In order to increase customer satisfaction,

product diversity, product and process

quality and production capacity, we serve

with the amateur spirit of the first day,

with the principle of “no excuses, only

solutions” in our new facility.

November

107 2022


Central Bank

takes fresh steps

to boost Turkish

lira deposits

Türkiye’s central bank took fresh steps to

boost Turkish lira deposits, raising the ratio

of bonds that banks must hold for foreign

exchange deposits and requiring those with

less than 50% lira deposits to hold even

more bonds from 2023.

The Central Bank of the Republic of Türkiye

(CBRT) raised the securities maintenance

ratio required for foreign exchange (forex)

deposits to 5% from 3% of deposits as of

this month, and said further steps would

be taken this year and next as part of its

“liraization strategy.”

In 2023, lenders with less than half of

deposits in lira will need to hold an

additional seven percentage points of

bonds, marking the latest regulatory

change meant to backstop policy of interest

rate cuts.

“The 7 percentage points of additional

bonds requirement is high, so it appears

the central bank wants... banks to have at

least 50% and if possible 60% of deposits

in lira next year,” said a forex dealer at one

bank.

Bankers told that the new rules would

require lenders to hold an additional TL 80-

TL 100 billion ($4.3-5.4 billion) of bonds.

The bankers, requesting anonymity, also

said individuals’ lira deposits were now

46% of total deposits, while commercial

entities lira deposits were 47%.

Also from 2023, banks whose lira deposits

are between 50-60% of the total must hold

an additional two percentage points of

bonds beyond the 5% set for this year, the

central bank said.

The monetary authority has urged forex

conversions with a series of rules beginning

in December 2021, when the national

currency depreciated sharply, after which

lira deposits rose.

“The practice has strengthened banks’

balance sheets and supported financial

stability,” the central bank said.

By the beginning of 2023, the level of

securities banks must hold will be based on

lira-deposit share targets.

Previously, the central bank required banks

to hold an additional 7% of securities if

they had a conversion rate from forex to

lira of less than 5% of their deposits.

The Banking Regulation and Supervision

Agency (BDDK) data shows individuals’

forex deposits amounted to TL 2.69 trillion

($144.74 billion) as of Oct. 7, while lira

deposits totaled TL 2.02 billion.

In the same period, forex deposits of

commercial entities were TL 1.61 trillion

while lira deposits were TL 1.27 trillion.

Türkiye’s central bank is expected to cut its

key policy rate again, according to surveys,

after President Recep Tayyip Erdoğan called

for more easing each month and said rates

should be single digits by year-end.

The CBRT surprised markets as it cut

its benchmark one-week repo rate by

200 basis points to 12%. The bank had

embarked on a rate-cutting cycle more than

a year ago as it lowered its one-week repo

rate by 500 basis points to 14%, where it

had left it steady in the first seven months

of this year. Monetary easing is part of

the government’s new economic program

that seeks to boost growth, investments,

employment and exports by lowering

borrowing costs, especially for exporters

and small and medium-sized companies.

November 2022 108


EQUIP AUTO Paris 2022:

A successful event that fulfilled its ambitions!

With attendance by 78,280 trade members

and nearly one thousand companies and

brands exhibiting, including 45% of new

exhibitors, EQUIP AUTO Paris has confirmed

its stature as a key event for every strand

of the after-sales automotive industry

and services for connected mobility. The

exhibition proved to be popular, orders

were signed, the atmosphere was friendly

and new prospects were thrown up. All in

all, the 2022 vintage delivered very positive

results!

Both quantity and quality

Held from 18 to 22 October at Paris Expo

Porte de Versailles, EQUIP AUTO Paris 2022

achieved its ambitious attendance target of

nearly 80,000 industry members. Although

the geo-political crisis, pandemic and

economic issues, along with the transport

strike on the first day, raised fears that the

event would fail to live up to expectations

in terms of reach, EQUIP AUTO Paris in fact

attracted large numbers of institutional

organisations, exhibitors and visitors, all of

whom enthused over the exhibition.

For 5 days, the top quality of the stands

hosted by some 1,000 companies and

brands, and their events, all of them

equally convivial, guaranteed that visitors

enjoyed a unique experience and fruitful

conversations. Exhibitors were delighted by

the 2022 exhibition, stressing the relevance

and enhanced value of visitor attendance

and confirming that they fully benefited

from it by completing many sales and

contracts.

November 2022 110


“Feedback from exhibitors is enthusiastic.

They confirm that they experienced an

unprecedented EQUIP AUTO Paris, marked

by its friendly atmosphere, high footfall and

the scale of business. The smiling faces we

witnessed, both in the aisles and on the

stands, brought further confirmation that

the format and programme were highly

relevant and aligned with industry needs”,

comments EQUIP AUTO director, Aurélie

Jouve. The organisers of EQUIP AUTO Paris

said that they were also satisfied with the

international audience, with attendance

by over 160 international exhibitors from

20 different countries (Korea, Spain,

Italy, Netherlands, Türkiye, etc.), along

with 40 Top Buyers from 8 countries

(Algeria, Belgium, Spain, Morocco,

Italy, Netherlands, Tunisia and Türkiye),

supported by the Promosalons network as

part of the France Recovery plan.

“Every strand of the automotive industry

(manufacturers, suppliers, distributors,

federations and representative

organisations, competitive clusters) came

together to make this event an incredible

success, which I am delighted with.

After witnessing the virtuous cycle of

ollaboration and ebullient atmosphere that

was a constant feature of our exhibition

over the five days, I would like to think

that it has truly established its inherent

spirit”, says Claude Cham, chairman of the

FIEV (Federation of Vehicle Equipment

Industries) and EQUIP’AUTO SAS.

An influential exhibition and key

stakeholder in the automotive and

mobility industry

EQUIP AUTO Paris welcomed

many politicians and international

representatives. The Secretary of State to

the Ministry of the Economy, Finances and

Industrial and Digital Sovereignty tasked

with Industry, Roland Lescure, officially

opened the exhibition.

He stated: “The automotive industry

is faced with major but necessary

changes to decarbonise our economy.

The State must support these industrial

transformations and we are heeding

that call by providing broad support for

innovation and industrialisation, across

the automotive industry’s value chain. It is

not only companies that need support in

transitioning their industrial fabric, but also

regions in order to guarantee that each

employee in the automotive industry has

job prospects in the area where they live

and up-andcoming industries”.

Welcomed over the following days, the

Minister of Labour, Full Employment and

Insertion, Olivier Dussopt, along with

the Secretary of State to the Ministry of

Environmental Transition and Regional

Cohesion in charge of Transport, Clément

Beaune, also seized the opportunity to

stroll through the exhibition and visit

themed areas.

Their conversations with exhibitors enabled

members of government to fully appreciate

the trade show’s variety and meaningful

contribution and gauge the commitment

of stakeholders – both long-standing

and newcomers – towards new mobility

solutions and automotive innovation

fostering environmental transition.

The chairman of France’s federation of

businesses, Geoffroy Roux de Bézieux,

along with the chairman of the Hauts-de-

France regional council, Xavier Bertrand,

regional elected representatives, MPs and

foreign ambassadors in France came to

witness first-hand this talent pool and hub

of industrial issues, all of them keen to gain

a greater understanding of the challenges

and needs of the industry and their impact

at regional level.

Next stop Lyon for EQUIP AUTO!

With its sights clearly set on the future,

EQUIP AUTO, which presented its calendar

of events for 2023-2024-2025, is now

preparing its new Lyon event scheduled

from 28 to 30 September 2023, and due to

be held jointly with the Lyon Motor Show.

“I am very satisfied with this five-day

exhibition and congratulate all the staff and

exhibitors for their involvement. All week,

people thronged the aisles, delighted to

be there. Many have already confirmed

pre-registrations for EQUIP AUTO Lyon in

2023. The gamble paid off! We will now

all get together to review the exhibition,

continue to make improvements and focus

on the next step. We are looking forward

to meeting up at Eurexpo with the Lyon

Motor Show”, concludes Philippe Baudin,

chairman of EQUIP AUTO.

November

111 2022


Caliskan Dokum started its production in Istanbul in 1983

by producing cast iron fittings. In 2017, it continued the

production on the DİSA Matic vertical molding line in its

foundry located in Tekirdag-Cerkezkoy.

Caliskan Dokum meets the needs of the market with high

volume casting requirements by producing pig, nodular and

tempered cast iron parts in its new modern facility.

Caliskan Dokum is a manufacturer of fittings and operates its

own brand, Caliskan Fittings. Thus, as a company culture, it

has the opportunity of higher quality and more professional

production in small figure parts. Our company, which makes

the machining of its own products, gives the products

that are poured in its own machining track as threaded

according to the customer demand.

Caliskan Dokum molding line is DISA Matic 2013 MK 4 and its

molding size is 480 x 600 mm. Our casting cooling line is 50

meters, which gives us an advantage in competition.

In our foundry, we cast products with a part weight between

50 gr and 30 kg as ductile iron

or temper, with or without

cores. Cores are produced by

hot box, cold box or shell core

processes, depending on the

requirements and complexity of

the parts being manufactured.

Caliskan Dokum casts EN-

GJL-150 (200-250-300), EN-

GJS-400 (450-500-600) and

EN-GJMB-350-10 according

to customer demand and

product structure.

Caliskan Dokum melting facility;

the inductothermy is a 2000 kg Duel-Track, with a double

crucible melting furnace that melts 600 tons per month. Our

company, which attaches importance to the sand process,

aims to make castings of even better quality with different

recipes and different sand processes for each poured

product. Each poured product is tested in the laboratory,

accompanied by spectral analysis, both after casting and

after casting.

Our company, which adopts customer satisfaction as a

principle, provides services to the construction, automotive

and agriculture sectors. As Caliskan Dokum, our primary

mission is to be the first choice of our valued customers with

our products, solutions, after-sales confidence and business

ethics. In our company, where customer satisfaction is the

top priority, our customers are provided with after-sales

support in all matters.


Uludağ Automotive Industry Exporters’

Association (OİB) excels in exports

The Uludağ Automotive Industry Exporters’

Association (OİB) was formed in 1991

under the title of Uludağ Vehicle and

Auxiliary Industry Exporters’ Association

(UTAYSIB) with 246 members and exports

of $163 million under the umbrella of

the Uludağ Exporters’ Association. As of

2021, OİB has approximately 7.500 active

memberships and it is the sole export

representative of the automotive industry,

the locomotive of the country’s total

exports. All exporting main and supplier

industry companies in the automotive

sector in Türkiye are members of OİB,

which is a union of coordination for

automotive sector exporters.

Continuously active for 30 consecutive

years and with an exports level of 25,3

billion dollars by the end of 2021, OİB’s

share in the total exports of UİB is 82% and

as such, it continues to be a determined

leader in exports, a status it has maintained

for many years. As the export champion of

the last sixteen years and Türkiye’s largest

export sector, the automotive industry is

the second biggest commercial vehicle

manufacturer in Europe.

The principal areas of business of the

Association may be summarized as:

• Increasing the export volume of the

industry;

• Informing its members about

developments in foreign trade.

• Implementing the policies set forth by the

Turkish Ministry of Trade and the Turkish

Exporters Assembly

The role of the automotive industry in

the Turkish economy is steadily growing.

Besides its potential for high added

value, the automotive industry is at the

foundation of advances in industrialization

and technology and its rate of growth

over the years, along with the export

opportunities it provides, has made it a

significant presence within the Turkish

economy.

Because the industry is so integrated with

many fundamental and locomotive sectors

such as iron & steel, petrochemicals,

textiles, glass, electronics, and machinery,

the input it contributes to these sectors, its

sales revenues, the added value it produces,

the real export value realized, its tax and

wage potential have assigned it a key role in

the economy. Moreover, the industry, with

its raw material and auxiliary industries, also

generates a huge volume of business and

employment for the marketing, dealership

service, fuel, financing, and insurance

sectors, all of which are key factors in the

delivery of automotive products to the

consumer. These characteristics of the

automotive industry make it a strategic

sector that draws the entire country’s

attention and necessitates special planning

designed specifically for the sector.

November 2022 114


As the No. 1 sector in exports, the

automotive industry is responsible for 29,3

billion dollars in exports. This means that

about one-seventh of total Turkish exports

belong to the automotive sector. With

this magnitude, the automotive industry

provides employment opportunities to

300,000, 50,000 in the main industry and

250,000 in the supplier industry. When

the dealerships, logistics, authorized and

special services are added to these figures,

employment totals 500.000.

At present, the Automotive Industry has

a 13% share in Türkiye’s total exports. In

line with our future goals, the companies

that have invested in our country need to

increase their capacities and we also must

draw new main industry investments into

the country.

“Turkish Grand National Assembly (TGNA)

Eminent Service Award”

In addition, the Uludağ Automotive

Industry Exporters’ Association has been

recognized by the Turkish Grand National

Assembly for its contributions to social

responsibility projects; the Association’s

Technical and Vocational High School was

commended with the TBMM Eminent

Service Award.” To meet the potential

needs of the school in the period ahead,

the OİB Educational Foundation (OEV),

founded in 2011, has joined OİB members

to support and develop various projects

initiated by the Foundation. Contributions

to the various projects for schoolchildren

are steadily growing. While the role of the

automotive industry in Türkiye’s general

economy is steadily growing, to meet the

need of the sector for qualified human

resources, the board of directors of the

Uludağ Automotive Industry Exporters’

Association (OİB) executed and took on all

costs for the building of the “OİB Technical

and Vocational High School,” which it

has now transferred to the ownership

of the Treasury, with usufructuary rights

belonging to the Ministry of National

Education. The school started to operate

in the academic year 2010-2011; it

accepts students through the selection

and placement central exam that is

administered throughout the country.

Equipped with the latest technologies,

the school is an exemplary project and

provides 7 different curriculum programs.

The OİB Technical and Vocational High

School is a major educational complex

with physics, chemistry, and biology

laboratories that serve 720 students,

along with other facilities that feature 6

workshops, 24 classrooms, a gymnasium

for 720, a 300-capacity boarding facility,

a 511-capacity multi-purpose hall and

lodgings comprised of 4 apartments.

Exemplary in its collaboration with the

Automotive Industry, a “first” was achieved

when the OİB Technical and Vocational

High School was recognized as a “Green

Building.”

From exports to the exemplary position

of the school as the first and only project

of social responsibility in its field, the

automotive industry has signed its name

to many “firsts” and with its collaboration

with main and auxiliary industry

corporations, it has pushed the boundaries

of environmental awareness with a

new concept of the world. Completing

its transformation with the donations

collected for the social responsibility

project, “Back Window,” started by the

Automotive Industry Exporters’ Association

Educational Foundation and Ford Otosan,

the OİB Technical and Vocational High

School was recognized in December 2012

as the first public building in its field and

the first and only educational institution to

earn a Green Building Certificate.

The automotive industry is looking for

designs and projects...

The ideas, designs, and projects of the

automotive industry find their way

into a competition that is held every

year. OİB organizes “The Future of

Automotive Design Competition” with the

Turkish Ministry of Trade’s support and

under the Turkish Exporters Assembly

(TIM) coordination. The objective of

the competition is to encourage the

development of unique and innovative

designs for the automotive industry,

bring together the innovative project

suggestions of manufacturers and

exporters, and turn these projects into

partnerships.

November

2022

116


100 billion liras loan package for tradesmen takes effect

The government’s Treasury-supported

loan package scheme for tradesmen and

craftsmen has taken effect following a

presidential decree, Treasury and Finance

Minister Nureddin Nebati has announced.

State lender Halkbank will provide a total

of 100 billion Turkish Liras ($5.4 billion) to

the businesses at an annual interest rate of

7.5 percent to be paid back in 60 months,

Nebati said.

Under the scheme, the limit of loans with

no interest to be made available to young

entrepreneurs has been increased from

100,000 liras to 300,000 liras, while the age

limit to be eligible for those financing has

been increased from 30 to 35, the minister

added. Meanwhile, President Recep Tayyip

Erdoğan said that interest rates in Türkiye

are coming down toward single digits.

“Hopefully, interest rates will fall to single

digits, and we will save our investors and

citizens from the oppression of interest

rates,” Erdoğan said in a speech he delivered

at a ceremony marking the inauguration of

several facilities in the province of Malatya

on Oct. 22.

Private banks have also started to lower

their interest rates, the president added.

“We did this in the past, lowered [the rate]

down to 4.6 percent and inflation then

dropped to 5.6 percent. We will increase the

income level of all people.”

Erdoğan has been long advocating for

lower interest rates to ignite the engine of

economic growth.

Earlier this month, he said that interest rates

should come down to single digits by the

end of the year. The Central Bank lowered

its benchmark interest rate for the third

month in a row. It slashed the one-week

repo auction rate from 12 percent to 10.5

percent but signaled that it may end the rate

cut cycle.

“The committee evaluated taking a similar

step in the following meeting and ending the

rate cut cycle,” the bank said in a statement

released after the Monetary Policy

Committee (MPC) meeting held on Oct. 20.

November 2022 118

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