Stellantis, Koç Holding reach agreement on Tofaş
ISTANBUL
Global automaker Stellantis announced on March 1 it had reached an agreement with Türkiye’s Koç Holding aimed at further expanding their joint venture Tofaş, which includes a change of the ownership structure of a local distribution unit.
“Under a new strategic agreement entered into today, Tofaş will acquire the entire share capital of the Stellantis distribution company in Türkiye, Stellantis Otomotiv Pazarlama,” the group said in a statement.
As a result, all Stellantis brands in the country, Alfa Romeo, Fiat, Citroen, DS Automobiles, Jeep, Maserati, Opel and Peugeot, will be distributed by Tofaş, Stellantis said.
“To gather all the activities in Türkiye under one single entity (...) 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,” it added.
As party of the deal, 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 and current Fiat Egea/Tipo project will be extended until end of 2025.
“As Koç Group, we have a strong commitment to invest in our country,” Koç Holding CEO Levent Çakıroğlu said.
“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.”
Tofaş is a joint venture of Koç and Stellantis, which was formed in 2021 through the merger of France’s PSA and Fiat Chrysler.
