Stellantis has strong ambitions for Turkey, which it intends to make one of its main markets in the future in order to consolidate and develop its presence in the Middle East. Following the merger between FCA and PSA, Stellantis is continuing to unify the commercial activities of all the Group's brands in Turkey under the umbrella of Tofaş, thus strengthening synergies and value creation for all brands in all segments for both partners.
Koç Holding and Stellantis are pleased to announce the expansion prospects of their existing joint venture, Tofaş, and the plan to optimise their business in Turkey through more efficient distribution of premium products and services to their customers and partners.
As part of the strategic agreement signed today, Tofaş will acquire the entire capital of Stellantis Otomotiv Pazarlama, the distribution company of Stellantis in Turkey. As a result, all Stellantis brands available in Turkey, namely Alfa Romeo, Fiat, Citroën, DS Automobiles, Jeep, Maserati, Opel and Peugeot, will be distributed by Tofaş.
Gathering all activities in Turkey under a single entity, backed by two powerful shareholders, will create unprecedented synergies in terms of commercial, production and R&D activities on a global level, as well as offering Turkish consumers a wider range of products and services that better meet their needs. New business opportunities are also expected to further enhance Tofaş's potential.
Levent Çakıroğlu, CEO of Koç Holding, said: "We are determined to continue to play our part in healing the wounds caused by the 6 February earthquake in Turkey, while trying to recover from the pain caused by this event. . As the Koç Group, we have a strong will to invest in our country and we are convinced that the new agreement will also help to overcome this difficult period. This strategic investment, coupled with Tofaş's production volume, export performance and R&D capabilities, will take the company to new heights in the automotive industry. As the first automotive company in Turkey and thanks to this new investment, Tofaş will expand its goals and strengthen its references. This agreement is further proof of the Koç Group's and our partner's confidence in our country in these difficult times. We will continue to do our best to increase Turkey's competitiveness in the automotive industry through the added value that will be generated. "
For Carlos Tavares, "Turkey is a key part of our long-term strategic plan, Dare Forward 2030, to gain a significant market share in the Middle East and Africa. Strengthening our partnership with Koç Holding will allow us to create synergies, increase value and develop the commercial potential of Stellantis brands across all segments. The Tofas joint venture is one of the most important industrial companies in Turkey, where it has one of the most important production, research and development centres. In the painful context that Turkey is currently experiencing, I would like to sincerely thank all the teams that have worked on this agreement, which will contribute to the extension of our leadership role, the fruit of more than 50 years of history in the country that shows the world its ability to rebuild a sustainable future with hope and resilience".
Under this agreement:
Stellantis will entrust Tofaş with the production of the "K0" model, in the versions of medium-sized light commercial vehicles and cars marketed under the five brands (Peugeot, Citroën, Opel, Vauxhall, Fiat), with the aim of starting production from the beginning of 2025;
The current production of the Doblo is expected to continue until the start of the "K0" model production lines in July 2023;
The current Fiat Egea/Tipo project will be extended until the end of 2025.
The transaction is expected to close in the second half of 2023, subject to the necessary regulatory approvals, including the approval of the relevant competition authorities.