General Overview

WORLD CLASS MANUFACTURING

In keeping with its attitudes towards the future and approach to sustainability, Tofaş integrates the environmental and social impact as well as the economic results of its operations into company policies. The company’s Bursa plant was one of the first three in the Fiat Chrysler Automobiles community to achieve “Gold” World Class Manufacturing status.

STRONG DEALERSHIP AND SUPPLIER NETWORK

Tofaş’s superior logistical and distribution competencies, advanced after-sales services capabilities, and the long-term and trust-based business relationships that it enters into with its dealers are all factors that constantly enhance the customer satisfaction to which the company gives such importance.

Today nearly every node in the Tofaş dealership network complies with the network’s “Integrated 3S” design specification, which means that customers can find sales, services, and spare parts at a single location. Besides selling new cars and providing after-sales services and spare parts, some Tofaş dealerships also provide customers with such additional services such as compulsory and optional insurance coverage, and vehicle financing.

In order to be nearer to their customers and also to provide them with better service, many Fiat dealerships also operate sales and services outlets at locations other than their main one. There are currently 33 such sales and service satellites in the Fiat dealership network. Besides these, there are also 31 authorized service outlets, whose operations are covered by agreements with a primary dealer and which only provide after-sales services.

Since the day it was founded, Tofaş has been contributing substantially to the growth and development of a home-grown automotive sub-industry by giving the utmost importance to localizing its procurement and manufacturing processes as much as possible. Tofaş today procures an average of 75% of its components other than engines and transmissions from domestic suppliers. The company purchases its direct materials from 149 suppliers located in 14 different cities./p>

THE BIST CORPORATE GOVERNANCE INDEX

A fundamental criterion of Tofaş’s corporate governance approach is to create sustainable value for all of its stakeholders and for its country as a whole. Tofaş was the first and only company from Turkey among 187 firms worldwide qualifying for inclusion in the “A List” of the Carbon Disclosure Project’s 2014 Climate Performance Leadership Index. Tofaş is also the first and still the only automotives company to be included in the İstanbul Stock Exchange’s BIST Sustainability Index.

Having been honored in the “Carbon and Energy Management” category at the 2015 Sustainable Business Summit and also as a result of the progress made in its compliance with corporate governance principles, in 2018 Tofaş’s corporate governance rating was raised to 9.20. This constantly improving score is evidence that Tofaş deals with all of its stakeholders in a manner that is fair, transparent, accountable, and responsible.

2018 PERFORMANCE

In 2018 Tofaş produced 301 thousand vehicles, a performance which singlehandedly accounted for 19% of the Turkish automotives industry’s total output.

The brands in the Tofaş portfolio has achieved overall sales volume by 11.7%. In the domestic market, Tofaş ranked third with 9,1% market share in automobile sales and second in the light commercial vehicle market with 21,1% market share. The Fiat brand maintained its second place in the ranking of total sales of automobiles and light commercial vehicles with 11.3% market share and 70 thousand sales units. At the same time, Tofaş became the company that sold the most vehicles from domestic production in the domestic market with a share of 94% in 2018.

Through exporting 243 thousand units, Tofaş singlehandedly accounted for 18% of Turkey’s total automotive exports in 2018. Tofaş achieved an export revenue of 3 billion dolars in 2018 and continued to contribute to the national economy by creating a foreign trade surplus of 1.28 billion dolars. Tofaş's 2018 revenues increased by 7% to TL 18.6 billion, while the company's net profit was TL 1.3 billion.