Stellantis, Koc Holding strengthens Tofas JV, enhances partnership in Turkiye

Koc Holding (KHOLY) and Stellantis (STLA) announced that they are confident at the prospects for further expansion of their existing Tofa joint venture and enhancement of the potential of its operations in Turkiye through the efficient offer of products and services to customers and partners. Under a new strategic agreement, Tofas will acquire the entire share capital of Stellantis Otomotiv Pazarlama A.S., the Stellantis Turkiye distribution company. As a result, all Stellantis brands available for distribution in Turkiye – Alfa Romeo, Fiat, Citroen, DS Automobiles, Jeep, Maserati, Opel and Peugeot – will be distributed by Tofas. To gather all the activities in Turkiye under one single entity supported by two strong shareholders 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 to Turkish consumers. New business opportunities are also on the horizon for further improving the potential of Tofa. The agreement also outlines that: Stellantis will allocate the production of the "K0" model to Tofas, in both mid-size light commercial vehicle and passenger car versions, planned for five brands with a target production launch from the beginning of 2025. The current Doblo production is planned to continue until the start of work on the production lines of the "K0" model in July 2023. Current Fiat Egea/Tipo project is extended until end of 2025. The transaction, which will be subject to requisite regulatory approvals, including the approval of the relevant competition authorities, is expected to close in the second half of 2023.