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Turkey’s only automotive manufacturer that produces both passenger cars and light commercial vehicles

Founded in 1968, Tofaş is the only company in Turkey that manufactures both passenger cars and light commercial vehicles.

Tofaş is a Koç Holding and Fiat Chrysler Automobiles (FCA) partnership in which each controls an equal stake. With 24.3% of its capital publicly-traded, Tofaş’s shares are included in both the Borsa İstanbul BIST 30 and the BIST 100 indexes as well as in that exchange’s Corporate Governance Index and Sustainability indexes. Tofaş’s shares are also quoted on the Luxembourg Stock Exchange (LuxSE).

Turkey’s Fourth
Biggest Industrial Enterprise
450 Thousand
Vehicle Annual Production
1,000,000 m 2
Of Operational Premises

With an annual production capacity of 450 thousand vehicles and with nearly 9 thousand employees, Tofaş is Turkey’s fourth biggest industrial enterprise. Headquartered in İstanbul, the company continues to enhance its competitive strength through investments while carrying out its manufacturing operations at its Bursa plant occupying about 1,000,000 m2 of grounds.

One of the important strategic production facilities of Fiat Chrysler Automobiles around the world, Tofaş is also the second biggest R&D center in Europe.

Tofaş manufactures Fiat Egea Sedan, Hatchback, and Station Wagon models at its Bursa plant. Marketed under different marque and model names in different parts of the world, Tofaş’s Egea line is sold as “Fiat Tipo” in Europe and as “Dodge Neon” in Mexico. Besides manufacturing for Fiat, Opel, Vauxhall, and RAM under its New Doblò Project, Tofaş is also a distributor, handling the domestic sales of seven marques (Fiat, Fiat Professional, Alfa Romeo, Jeep, Lancia, Maserati, Ferrari) in Turkey.

MOST SUCCESSFUL R&D IN
THE TURKISH AUTOMOTIVES INDUSTRY
WORLD CLASS
MANUFACTURING
STRONG DEALERSHIP AND
SUPPLIER NETWORK
THE BIST CORPORATE
GOVERNANCE INDEX
2017 PERFORMANCE

MOST SUCCESSFUL R&D IN THE TURKISH AUTOMOTIVES INDUSTRY

Besides being a source of export revenues and jobs, Tofaş also creates long-term value for the Turkish economy through the automotives industry investments and projects that it undertakes. Cited by the Ministry of Science, Industry and Technology as “Best R&D Center in the Automotives Industry” in both 2016 and 2017, the Tofaş R&D Center also placed first among Turkish entrants in the European Union’s ranking of companies based on their R&D investments for three years in a row. In 2017 the center also jumped twelve places to 535th position in the European Commission Joint Research Center’s R&D Investment Score List.

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 41 such sales and service satellites in the Fiat dealership network. Besides these, there are also 33 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 71% of its components other than engines and transmissions from domestic suppliers. The company purchases its direct materials from 151 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 2017 Tofaş’s corporate governance rating was raised to 9.15. This constantly improving score is evidence that Tofaş deals with all of its stakeholders in a manner that is fair, transparent, accountable, and responsible.

2017 PERFORMANCE

In 2017 Tofaş produced 384 thousand vehicles, a performance which singlehandedly accounted for 23% of the Turkish automotives industry’s total output and which easily defended the company’s standing as the sector’s leader. Despite a 3% contraction suffered by the Turkish automotive market in 2017, the brands in the Tofaş portfolio successfully increased our overall sales volume by 12.7%. The Tofaş brands in Turkey’s passenger car and light commercial vehicle market commanded a 12.8% market share last year. At 120,049 units, sales of Fiat-branded passenger cars and light commercial vehicles ranked in second place with a 12.6% market share. As the automotive firm with the highest percentage of domestic production as a component of total sales for many years, Tofaş once again defended its industry leadership in 2017 by that measure with a 91% rate.

Through exporting 271 thousand units, Tofaş singlehandedly accounted for 20% of Turkey’s total automotive exports last year. As a result of all of its operations, the company generated a foreign trade surplus of 1 billion dollars.

In 2017 Tofaş booked a total turnover worth TL 17.5 billion (up by 23% as compared with 2016) while its net profit also increased by 32% to TL 1,283 billion during the same twelve-month period. At 11.5% last year, Tofaş’s EBITDA margin was 1.9 percentage points higher year-on-year while its EBITDA amounted to TL 2 billion, were 46.5% higher.

ANOTHER MILESTONE: FIAT EGEA

In 2015 Tofaş introduced a sedan-body vehicle as the first member of the Egea Family, the company’s new passenger car project. The model also went on sale in other countries’ markets as of December of the same year.

With the completion of project-related investments, hatchback and station wagon versions of the Egea Family also went on sale in 2016. As the Tofaş R&D Center had overall responsibility for the development of these vehicles, their intellectual property rights also belong to Tofaş. Costing about a billion dollars, the project to develop these models represents one of the biggest product investments ever undertaken in the history of the Turkish automotives industry. With 35 thousand units sold in 2016, the Fiat Egea sedan not only was Turkey’s best-selling car but was also chosen “Best-Buy Car Of The Year In Europe” at AutoBest 2016. The first globally-marketed car whose R&D and manufacturing operations were carried out in Turkey, 43 thousand units of the sedan member of the Fiat Egea Family were sold worldwide in 2016. That successful performance continued in 2017, when the car became Turkey’s best-selling automobile for the second time.