Tofaş: The industrial giant of Turkey
Turkish automotive company, Tofaş, whose foundations were laid by founder of the Koç Community, deceased Vehbi Koç, in 1968, and which has equal shareholders as Koç Holding and Fiat Chrysler Automobiles (FCA), today is one of the two R&D centres of FCA in Europe. Being the sixth largest industrial enterprise of Turkey, Tofaş has an annual manufacturing capacity of 400 thousand vehicles with 6.500 employees. Today operating on a land of 1 million m2 with an indoor area of 350 thousand m2, Tofaş constantly enhances its competitive capacity. Being the only automotive company which manufactures both automobiles and light commercial vehicles in Turkey, Tofaş makes productions for brands Fiat, Citroen, and Peugeot as part of Minicargo project and brands Fiat, Opel, Vauxhall and RAM as part of New Doblo project in Bursa Plant. Tofaş undertakes the representation of 6 brands (Fiat, Alfa Romeo, Lancia, Jeep, Maserati, Ferrari) in the domestic market.
Tofaş has acted in line with the philosophy “Giving back to these lands what was earned thanks to them; growing together with Turkey” from the date of establishment and conducts many projects focusing on the fields of education, culture-arts and sports within the scope of corporate social responsibility activities.
Performance in 2014
Tofaş, the leading company of the Turkish automotive industry, 2014 has become a historical year with its new model investments, attempts at getting into new markets, R&D studies, and achievements in the field of corporate sustainability. The Company increased its performance in respect of the operating results despite the shrinkage having occurred in the domestic market of the industry. Having reached the highest sales income in its history in 2014, Tofaş recorded a net sales income of 7.4 billion TL with a 5.7% increase compared to the previous year and a net profit of 574 million with a 32% increase. Tofaş realized 19% of the total automotive production in Turkey with a production of 222,807 vehicles. It exported 142,281 units out of the vehicles it manufactured and created a foreign trade surplus of 367 million USD.
Tofaş took 12% share from the total market realizing 92 thousand units sales with brands Fiat, Alfa Romeo, Lancia, Jeep, Ferrari and Maserati in the Turkish automotive market which ended 2014 with a 10% shrinkage and 767 thousand units and 89 thousand units out of its sales was with brand Fiat.
The brand Fiat became the leader of the light commercial vehicle market with its sales performance in the domestic market, and reaches the highest market share of the last four years. The model Doblo became the bestselling light commercial vehicle of the year and Maserati became the fastest growing brand of 2014. The brand Jeep also increased its sales by 102%.
2014 has become a year in which important strategic decisions were made to carry Tofaş into the future. Having planned its next 20 years, Tofaş focused on R&D and news models in order to maintain its competitiveness on a global scale. 2014 has also become a year of pride in which Tofaş recorded the biggest investments of the Turkish automotive history. Following the investment in Doblo and New Sedan automobiles renewed as part of Doblo America project, Tofaş made a decision to invest in two new automobile models including Station Wagon and Hatchback and its total approved investment amount has been 1.4 billion USD in the past two years. These vehicles, whose intellectual and industrial property rights belong to Tofaş, will strengthen both Tofaş and Turkish automotive industry in the global arena. As part of the new automobile project, Tofaş is planning to manufacture 580,000 vehicles between 2015 and 2023 and export at least the one-third of these vehicles, 2015-2023.
Tofaş established its R&D organization in 1994. Tofaş has a R&D vision as “developing vehicles and technologies fulfilling customer satisfaction in every part of the world” so Tofaş R&D Centre is aimed at providing contribution to the profitability of Turkish society, economy and to Tofaş by developing automobiles and commercial vehicles that are competitive in every field. Tofaş R&D Centre has been registered as the R&D Centre by Ministry of Industry and Commerce within the scope of the law on "No. 5746 Supporting Research and Development Activities" as of 2008.
Today Tofaş R&D Centre, apart from Italy, is the only R&D center that provides services for FCA’s European markets with its over 600 employees, competency level, high technology and diversity of its laboratories.
Increasing its R&D expenditure to 3% of its turnover, and carrying its R&D investment values above the national average, Tofaş ranks on top in the national patent ranking of the Turkish Patent Institute with its 67 patents
World Class Manufacturing
In line with its’ future perspective and sustainability principle, Tofaş is integrating its activities' environmental and social effects, as well as their economic outcomes, into the company policies. Having an important place in FCA World under the World Class Manufacturing (WCM) programme, Tofaş serves as a model with its environmentalist approach and practices. In line with these works, Tofaş Bursa Plant rose to the “Golden Level” in 2013 within the scope of WCM that is implemented in 547 plants and suppliers of FCA and went one step further in the global competition.
As a result of the global evaluation of CDP (Carbon Disclosure Project), Tofaş is the first Turkish company taking place among 187 organizations on the Band A that is the highest score in the 2014 Climate Performance Leadership Index. Also it takes place as the first and only automotive company in the “BIST (Istanbul Stock Exchange) Sustainability Index” announced by the Istanbul Stock Exchange first in 2014. As a result of the improvements Tofaş performed for the corporate governance principles, its corporate governance rating rose to 9.01.
2015 and beyond
The mission of Tofaş is “to increase the quality of living by offering products and services that best fit the society’s mobility needs” and its vision is “towards a million of vehicles, to become the leading automotive company that shapes customer expectations and be a source of pride”. Together with the awareness of social and environmental responsibilities, Tofaş continues to work for sustainable and profitable growth in the long term within the framework of its mission and vision. The long-term targets of Tofaş being a strong manufacturer and distributor include being a company based on sustainable growth and profitability through manufacturing capacities, power of technology and added value it creates for its stakeholders.
Koç Fiat Kredi Tüketici Finansman A.Ş.
Koç Fiat Kredi offers integrated financial services to the brands represented by Tofaş via 81 distributors throughout Turkey. Koç Fiat Kredi supplied loans of 1,146 million TL for 39 thousand vehicles in 2014 and provided loans for 38% of the retail sales of Tofaş. The loan portfolio reaches 1,316 million TL. Koç Fiat Kredi issued securities with a nominal value of 215 million in 2014 in the financing of loans supplied. By the end of the year the balance of securities issued has a nominal value of 405 million TL nominal. 2014 has become a successful year for Koç Fiat Kredi which it ends with a record penetration and in which Tofaş increased its share in sales.
Fer Mas Oto Ticaret A.Ş.
Mas Oto Ticaret A.Ş. was established on 15 April 2005 with Tofaş Türk Otomobil Fabrikası A.Ş. having a 99,4% share. The company has become the official distributor of Ferrari from April 2005 and of Maserati from July 2005 in Turkey. Continuing its operations at its showroom and head office in Kuruçeşme, in 2014 the Company performed 11 sales with the brand Ferrari and 83 sales with the brand Maserati and was given the title “the Fastest Growing Brand” by the Automotive Distributors' Association. www.tofas.com.tr