We plan for the next 20 years,
to carry the Turkish
automotive sector forward.
expectations, we focus on
R&D and innovation in our new
In 2013, Tofaş ranked 5th in the domestic passenger car market with sales of 50,256 Fiat-brand cars, giving it a 7.6% market share. In the light commercial vehicle market, Tofaş is 2nd with sales of 47,337 vehicles and a market share of 25.1%. The Company ranks 4th in overall sales, having sold 97,593 vehicles, giving it an 11.2% market share.
Sales of the Alfa Romeo, Lancia and Jeep brands rose by 30% over those of the previous year.
Export markets diversification strategy
Tofaş produced 244,614 vehicles, which is 22% of total automotive production in Turkey. It exported 160,319 vehicles, giving it 3rd place in Turkish automotive exports. The Company’s export market diversification strategy, devised to offset contraction in European automobile markets, delivered a 4.1% increase in export volume over that of 2012.
The 5-door Fiat 500L, the newest member of the Fiat 500 family, was among the new automobiles launched in 2013. The Ducato cargo pickup truck and minibus options, were also new market entries. The Doblo XL, a new version of the Doblo with a long body and high roof, became a more efficient option for freight and cargo transport. Sales of the Ypsilon, Lancia’s mini urban model, began in Turkey.
The Jeep Grand Cherokee was remodeled and put on sale in July. Similarly, the Jeep Compass was given a face-lift and put on sale in August. Other new entries that stood out in 2013 was the 4-door Maserati sedan models, the Quattroporte and Ghibli, which were also marketed during the year.
Tofaş invested US$ 196 million in 2013. The Company initiated new model project investments amounting US$ 880 million and obtained relevant incentive approvals. The most important components of these investments were US$ 360 million for the adaptation and renovation of the Doblo for the US market, and US$ 520 million for a new passenger car model.
Despite the ongoing contraction in European markets and decreasing share of light commercial vehicle segment in the domestic market, Tofaş announced net profits of TL 434 million in 2013, demonstrating how resilient the Company is in fluctuating economic and market conditions.
The Company maintained its investments in new models in 2013 to position itself for the next ten years with no detriment to its financial structure. Tofaş had a US$ 512 million foreign trade surplus, thereby enabling it to make an important contribution to Turkey’s economy.
Main awards and successes
- Tofaş achieved the Gold Level among Fiat plants in 2013 through the WCM-World Class Manufacturing Program launched in 2006.
- In the Automobile Distributors Association’s Gladiators of the Year Awards:
- Fiat Linea won the 2013 Bestselling Automobile of the Year award
- Lancia won the Fastest Growing Brand of the Year award
- Fiat 500 won the communication award.
- Fiat Doblo: best-selling light commercial vehicle in Turkey.
- Tofaş’s “Adım Adım İş Güvenliği” (Step by Step Occupational Safety) project garnered the European Agency for Safety and Health at Work best practice award.
- Tofaş received awards at the Bursa Chamber of Commerce and Industry’s 40th annual “Contributors to the Economy” event in three categories: exports, taxes and (the Grand Prize) innovation.
- METU (Middle East Technical University) students named Tofaş as “Entrepreneur of the Year.”
2014 and beyond
Macroeconomic dynamics appear destined to weaken domestic demand further in 2014. However, positive signals from Europe suggest the sector’s export potential will rise. Tofaş plans to strike a balance between domestic market and export activities in 2014 and it expects to implement many new investments already initiated. Production in the Doblo US project is scheduled to begin in the second half of 2014. Moreover, completion of infrastructural investment in the new passenger car project, due to begin production in 2015, is planned for 2014. Tofaş also plans to launch important new R&D investments in 2014.
Tofaş’s long-term goals and strategies involve a strong focus on R&D, through which the Company plans “to develop vehicles and technologies that generate full customer satisfaction in every region of the world.” In this way, Tofaş strives to create value for Turkey’s society and economy, as well as for the Company’s shareholders and other stakeholders, by developing its competitive passenger and commercial vehicles.
Priorities in risk management
Risk management at Tofaş has been organized in line with legal regulations. Risk management reports are sent directly to the Board of Directors. Risk management is based on “protecting the assets and values of the Company,” “providing commercial, financial and operational confidence,” and “sustainability in corporate risk management.”
KOÇ FIAT KREDİ
Koç Fiat Kredi provides consumer financing for the brands Tofaş markets. The Company provided loans of TL 1,005 million for 41,000 vehicles in 2013, thereby financing 56% of Tofaş’s retail sales. Its loan portfolio totaled TL 1,245 billion in 2013.
Koç Fiat Kredi financed its lending by issuing securities with a total nominal value of TL 405 million, of which TL 190 million was obtained by security issuance.