March 1, 2023
Stellantis and Koç Holding Strengthen Tofaş and Enhance Partnership in Türkiye
- Commercial activities for all Stellantis brands in Türkiye will be consolidated under Tofaş, enabling increased business synergies and value creation for all Stellantis brands and segments along with Tofaş
- Stellantis will allocate a new production of the “K0” to Tofaş, in both mid-size light commercial vehicle and passenger car versions, planned for five brands, with target production launch from beginning of 2025
- Current Doblo production is planned to continue until the start of work on the production lines of the “K0” model in July 2023
- Current Fiat Egea/Tipo project will be extended until end of 2025
- Strategic collaboration will more efficiently bring customer-centric and industry-leading products to the customers
ISTANBUL – Koç Holding and Stellantis N.V. today announced that they are confident at the prospects for further expansion of their existing Tofaş joint venture and enhancement of the potential of its operations in Türkiye through the efficient offer of best-in-class products and services to customers and partners.
Under a new strategic agreement entered into today, Tofaş will acquire the entire share capital of Stellantis Otomotiv Pazarlama A.S., the Stellantis Türkiye distribution company. As a result, all Stellantis brands available for distribution in Türkiye - Alfa Romeo, Fiat, Citroën, DS Automobiles, Jeep®, Maserati, Opel and Peugeot - will be distributed by Tofaş.
To gather all the activities in Türkiye under one single entity supported by two strong shareholders will not only allow unprecedented synergies in commercial activities, production and R&D globally, but will also pave the way to offering broader and more efficient products and services to Turkish consumers. New business opportunities are also on the horizon for further improving the potential of Tofaş.
Koç Holding CEO Levent Çakıroğlu said, “We are resolved to continue to play our part in healing the wounds of Türkiye’s 6th February earthquake disaster as we try to recover from the pain caused by the event. As Koç Group, we have a strong commitment to invest in our country, believing that the new agreement will also help to overcome this difficult period. This strategic investment, combined with Tofaş’s production volume, export performance and R&D capabilities, is taking the company to new heights in the automotive industry. As the leading automotive company in Türkiye, Tofaş will further expand its goals and strengthen its credentials with this new investment. The agreement is yet another confirmation of the Koç Group’s and our partner’s strong belief in our country at this difficult time. We will continue to do our best to increase the competitiveness of Türkiye in the automotive industry through the added value that will be generated.”
“Türkiye plays a critical role in Dare Forward 2030, our long-term strategic plan, as we push to achieve a leading market share in Middle East and Africa,” said Stellantis CEO Carlos Tavares. “Deepening our partnership with Koç will create synergies, increase value, and grow the market potential for the array of Stellantis brands across all segments. Being one of Türkiye’s leading industrial companies, our Tofaş joint venture is one of our key production and R&D hubs. In the current painful context that Türkiye is encountering, I would like to express my warm thanks to the teams who have been working on this deal as it will drive our leadership role beyond our 50-plus year history in a country that is demonstrating to the world its capacity to rebuild a sustainable future with hope and resilience.”
The agreement also outlines that:
- Stellantis will allocate the production of the “K0” model to Tofaş, in both mid-size light commercial vehicle and passenger car versions, planned for five brands with a target production launch from the beginning of 2025.
- The current Doblo production is planned to continue until the start of work on the production lines of the “K0” model in July 2023.
- Current Fiat Egea/Tipo project is extended until end of 2025.
The transaction, which will be subject to requisite regulatory approvals, including the approval of the relevant competition authorities, is expected to close in the second half of 2023.
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers and a mobility provider. Its storied and iconic brands embody the passion of their visionary founders and today’s customers in their innovative products and services, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Powered by our diversity, we lead the way the world moves – aspiring to become the greatest sustainable mobility tech company, not the biggest, while creating added value for all stakeholders as well as the communities in which it operates. For more information, visit www.stellantis.com.
About Koç Holding
Dating back to 1926, Koç Holding, one step ahead of change at all times, has become one of the largest and most successful groups in Turkey and in the region and the only Turkish company to be listed in Fortune Global 500 list. As of today, Koç Holding is Turkey’s leading investment holding company and Koç Group is Turkey’s largest industrial and services group in terms of revenues, exports, number of employees, taxes paid and total market capitalization on Borsa Istanbul. Koç Group has been a driving force of the Turkish economy with revenues that correspond to 9% of Turkey’s GDP and exports that comprise 7% of Turkey’s total exports. Koç Holding has leading positions with strong competitive advantages in energy, automotive, consumer durables and finance sectors, which offer strong long-term growth potential. Creating long-term sustainable value for the world and the societies in which the Koç Group operates, lies at the heart of its business model.
One of the leading automotive companies in Türkiye, Tofaş was founded in 1968. 24.3% of Tofaş’s shares are traded on the İstanbul stock exchange; control of the remaining shares is divided equally between Koç Holding and Stellantis. Tofaş’s publicly-traded shares are also included in the İstanbul stock exchange’s Corporate Governance and Sustainability indexes. As one of Stellantis’s foremost manufacturing and R&D centers, Tofaş creates added value for Turkey’s economy, industry, and R&D know-how by undertaking important roles in its parent’s global product-development projects. Tofaş’s plant produces Fiat Doblò and Fiorino as well as the Fiat Tipo / Egea family’s sedan, hatchback, station wagon and cross models. Tofaş offers a broad portfolio of brand and products in Turkey; as the distributor of Fiat, Fiat Professional, Alfa Romeo, Jeep®, Maserati, Ferrari brands.
STELLANTIS FORWARD-LOOKING STATEMENTS
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