The best-selling automotive brand in Turkey for 12 consecutive years
Industry leader for the 12th consecutive year
In 2013, the domestic market shifted to passenger cars resulting in a decline of 21% in the light commercial vehicle segment. Despite this adverse trend, Ford Otosan sold 114,141 vehicles in the domestic market through its flexible strategy. With a 12.8% market share, it sustained the industry leadership for the 12th consecutive year.
In the passenger car segment, the launch of the Ford Fiesta and Ford Kuga was realized. The Company began sales of the new Ford Cargo tractor units, developed by Ford Otosan engineers, under the Global Cargo agreement which also includes engineering exports. New model of the Ford Transit Custom, named 2013 International Van of the Year, with a mid-range roof height was added to the product portfolio.
Heavy investment continued, totaling US$ 534 million in 2013. Ford Otosan completed its Yeniköy Plant, part of an ambitious US$ 1 billion investment program, in a record time of 16 months and started test production. As Ford Otosan’s third manufacturing facility, this plant contains state-of-the-art technology applied for the first time ever within Ford network. The Yeniköy Plant will be Ford’s sole production center for the completely new light commercial vehicle Transit and Tourneo Courier models, and it has an annual production capacity of 110,000 units. By the time the investment program is completed, at the end of 2014, total capacity will rise to 400,000 at the Kocaeli plant and to 15,000 at the Inonu Plant.
Ford Otosan is to invest US$ 100 million in the production of the new 11-liter and 13-liter Ecotorq engines. The intellectual property rights of the engines, designed by Ford Otosan engineers, belong to Ford Otosan. The new Ecotorq engines that will be manufactured at Euro 6 emission standards, are expected to have wide use including heavy commercial vehicles as well as industrial and marine applications.
Ford Otosan laid the foundations for Turkish automotive sector’s largest technology and R&D center, to be completed with TL 60 million of investment. The new engineering center is planned to give 3 million hours of engineering service with 1,300 engineers. Ford Otosan is one of Ford’s three large R&D centers in the world, the sole global engineering and design center for heavy vehicles, and the development and calibration center for diesel engines.
Highest export figure in history
Despite the contraction of the European market in 2013, Ford Otosan exports to Europe reached its highest level ever at 226,671 vehicles, increasing its share even in shrinking markets. This was achieved through market diversification and the success of its new products, the Transit and Tourneo Custom. The US$ 3.8 billion in earnings from these exports marked the Company’s net-exporter position.
Ford Otosan produced 281,287 vehicles and maintained an effective capacity utilization rate of 85%, exceeding the Europe and Turkey average.
The life-cycle of Transit Connect, manufactured at the Kocaeli Plant since 2002, was completed with a successful history behind. The New Transit Connect, of which the body design made by Ford Otosan engineers, has been named 2014 Commercial Vehicle of the Year.
Ford Otosan signed an agreement with China’s JMC to have its patented Ecotorq engines manufactured in China, the world’s largest heavy commercial vehicle market, for use in JMC vehicles. Ford Otosan thereby recorded another first for Turkey by exporting technology to China.
An aging product range, the domestic market shift from light commercial vehicles to passenger automobiles, and a significant increase in exchange rates, had a negative impact on the Company’s profitability.
Ford Otosan, a global example for its innovative approach, flexible solutions, and impressive advanced calibration skills, received the 2013 Engine Test Facility of the Year award from Automotive Testing Technology International Magazine. It was the first Ford center to win this award.
2014 and beyond
On the heels of the greatly successful old Transit and Transit Connect in 2013, the production of the New Transit will begin in the first quarter of 2014, to be followed by the Courier in the second quarter of the year. The investment program started in 2011 will draw to a close, with the overhaul of the entire Ford Otosan product portfolio.
Ford Otosan is embedded in 54 years of history. Its vehicle and engine production prowess, top-notch engineering talent, competitive R&D organization and engineering exports make it a technology company with a flawless business model. It continues to raise the standards not only in Turkey but globally, with its investments and projects.
Priorities in risk management
The fundamental goals of Ford Otosan’s risk management are to anticipate potential risks in every area, monitoring and managing them, and to design proactive risk and crisis management action plans. The Company’s Board of Directors, Risk Early Detection and Management Committee, Internal Audit Committee and Executive Management are kept informed about any possible risks.