Turkey’s largest local automotive manufacturer, Tofaş a Fiat joint venture, is aiming to become Fiat’s most important global research and development centre by 2010 thanks to new government incentives to encourage the R&D sector.

Turkey’s largest local automotive manufacturer, Tofaş which produces cars in partnership with Italian auto giant Fiat, is aiming to become Fiat’s most important research and development centre by 2010.

Tofaş' Mustafa Koç, who is also the CEO of Koç Holding, which is responsible for 46 percent of total automotive production in Turkey and 45 percent of total automotive exports, said, “Tofaş will continue to grow by combining its 40 years of experience, innovative dynamism and competitiveness, and the company will reach new horizons in the future.” Koç also said they will increase their production capacity further in order to meet their $3 billion export target for 2009.

Koç spoke at the Tofaş' 40th anniversary on Wednesday at the Bursa Anatolian Automobile Museum and shared their future plans for operations in the auto industry with the audience. He said Ford Otosan has an investment plan of just $115 million for 2008, adding that this figure was $514 million for Tofaş. Turkey is rapidly becoming a central figure in the global auto manufacturing business. In 2007 the leading auto giants of the world manufactured 1.3 million automobiles in Turkey. Considering the total targets of all automotive companies in Turkey, this number is expected to reach 2 million in 2008. The majority of automobiles manufactured in Turkey are exported to European countries and other markets.

Industry and Commerce Minister Zafer Çağlayan also spoke at the gathering and said, “I speak having been an industrialist for 27 years; the R&D Incentive Law is a revolutionary law.” The minister said the regulations necessary for the implementation of the R&D Incentive Law, which was passed by Parliament two months ago, were being prepared at the Court of Accounts, adding that approval was expected in a few days. “The new law will be revolutionary as it will bring many opportunities. It will both empower the R&D departments of the companies operating in Turkey and increase their innovation, competition and technological power and encourage the world’s giant companies to establish their R&D departments in Turkey.”

Çağlayan said the Turkish automotive industry has become one of the world’s biggest automotive producers, with its $22 billion in exports in 2007 and $27 billion targeted for 2008, adding, “I am very proud that today 15 out of every 1,000 cars in the world are being produced in Turkey. Turkey produces one car every 24 seconds and exports one every 30 seconds.”

Çağlayan said that when Turkey signed the customs union agreement in 1995 most people thought it was the end of the Turkish automotive industry, adding that this proved to be wrong as the automobiles produced in Turkey are exported all around the world today. “The most important reason for this is our self confidence. We have gotten rid of our inferiority complex that says we cannot manage to do this. Another reason is that Turkey’s economy is more stable compared to previous years,” he explained.

Report courtesy of Today's Zaman