€2 Billion Investment in Turkey by Ford Otosan

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On March 16, 2021, President Erdoğan announced the €2 billion investment in Turkey by Ford Otosan during the Ford Otosan Future Vision Meeting held in the Presidential Complex in Ankara. This will be the biggest investment in the automotive industry in Turkey.

Ford Otosan will begin commercial vehicle production for Ford Motor Company and Volkswagen in the first half of 2023. According to the bullet the company published, those vehicles will have electric, hybrid (PHEV), or diesel engines as a part of this investment in Turkey.

As the company unveiled in December 2020, they increased the production capacity and decided to invest in the battery assembly line as well. Following this announcement, the company received an investment incentive certificate of 20.5 billion TL to increase the factory’s capacity from 440.000 to 650.000 units and establish the battery assembly factory. Eventually, the factory will become the first and only integrated electric vehicle production facility, including a battery assembly line in Turkey.

€1.4 billion of the investment will be made to increase the company’s production capacity on a unit basis. As a result of the factory’s expansion, the production capacity of only a 1-ton medium commercial vehicle model will increase to 405.000 units. With the capacity increase, Ford Otosan will employ more than 15.000 people. The total amount of the investment in Turkey will cover the next years of the company in total.

Ford Otosan will sell the vehicles in Turkey, and in other countries, the cars will be sold by Ford Motor Company. Ford has been the market leader for 56 years in the UK, and it is the largest-selling commercial vehicle manufacturer with a market share of %15 in Europe. The company predicts that all the companies that produce commercial vehicles will have to reduce their carbon emissions in the near future.

You can read more about the automotive industry in Turkey on our blog.

Source: www.invest.gov.tr

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