Automotive Expotrs November 2022

1

Monthly automotive aftermarket magazine
GROUP CHAIRMAN
H. FERRUH ISIK
PUBLISHER:
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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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