Tofaş signs production agreement with Stellantis

ISTANBUL

Turkish carmaker Tofaş has announced that it signed a deal with Stellantis Europe S.P.A. to produce vehicles in Türkiye.

Tofaş is a joint venture between Turkish conglomerate Koş Holding and Stellantis.

The agreement grants Tofaş the right to produce the new model "K0" light commercial vehicle and "combi" versions in multi-energy platforms for Stellantis brands — Fiat, Opel, Citroen and Peugeot — under Stellantis license, the Turkish carmaker said in a filing with Borsa İstanbul.

In accordance with the manufacturing agreement, an investment amounting to up to 232 million euros ($250 million) is estimated for the project, it added.

The target is to produce 1 million vehicles between 2024 and 2032, said the statement.

The distribution right of the vehicles produced for the Fiat brand in Türkiye is granted to Tofaş.

The distribution rights of other Stellantis brands, namely Opel, Citroen and Peugeot, in the country will be transferred to Tofaş if the acquisition of Stellantis Otomotiv is executed, according to the statement.

Last month, the Competition Board did not approve the acquisition of Stellantis Otomotive by Tofaş, saying that the authority said the commitments given were deemed insufficient to authorize the transaction.

In a statement to the stock exchange, Tofaş said at that time that the authority’s decision was of an interim nature and that it would submit additional explanations to the Competition Board within the legal period.

Tofaş separately announced that its net income fell around 63 percent year-on-year in January-September to 5.03 billion Turkish Liras, while revenue was down 30 percent to 87.1 billion liras.