Tag: Ford

  • Ford Plans Expansion in Turkey – Zacks.com

    Ford Plans Expansion in Turkey – Zacks.com

    Ford Motor Co. (F – Analyst Report) and Koç Holding, its Turkish joint venture partner, announced an investment of €205 million ($290 million) at its Kocaeli plant in northwestern Turkey through their joint venture, Ford Otomotiv Sanayi AS or Ford Otosan.

    The investment will help the joint venture manufacture a new van model.

    Ford Otosan started production in 1965, with each company holding a 41% share in the venture. It operates four facilities in Turkey: two in Kocaeli, one in Eskisehir and one in Istanbul.

    Ford Otosan has a share of about 15% in the domestic market. Its share in the passenger car market is roughly 10%, while the light commercial vehicle segment is nearly 20%.

    Ford, a Zacks #3 Rank (‘Hold’), posted a 24% drop in profit to $1.2 billion or 30 cents per share (before special items) in the fourth quarter of 2010, compared to $1.58 billion or 43 cents per share (before special items) in the same quarter of 2009. With this, the automaker has missed the Zacks Consensus Estimate by 19 cents per share.

    The decline in profit was attributable to lower year-over-year revenues generated by the company’s automotive operations as well as the financial arm. Total revenue during the quarter ebbed 7% to $32.5 billion. However, excluding revenues from Volvo, sales improved by $1.6 billion or 5% from the fourth quarter of 2009.

    For full year 2010, Ford boasted of a profit of $7.58 billion or $1.91 per share (before special items), which is a record in more than 10 years led by led by strong performance in North America, reflecting favorable volume, mix and pricing, as well as better performance by Ford Credit. It compared with a profit of $19 million or one cent per share in 2009. However, the company’s profit failed to meet the Zacks Consensus Estimate of $2.09 per share.

    via Ford Plans Expansion in Turkey – Zacks.com.

  • Will the Next NYC Taxi Come from Turkey?

    Will the Next NYC Taxi Come from Turkey?

    Karsan No Turkey: The Karsan NYC Yellow Cab

    Could the next generation of New York City “yellow cabs” end up coming from Turkey? Karsan, a major Turkish automotive company, certainly hopes so now that it was chosen to be among the three finalists in the city’s competition for a new cab.

    Karsan’s somewhat futuristic-looking entry was the only one expressly designed to be a cab, as opposed to a retrofitted model, and is designed to have room for five (plus a stroller) and be wheel-chair accessible. CNN has the story.

    For Turkish automotive history buffs, it may be worth noting that Karsan’s chief is Jan Nahum, the same man who in the mid-1970’s designed the “Bocek,” a dune-buggy like car that was supposed to be Turkey’s answer to the VW Beetle Buggy. In fact, after looking at photos of the “Bocek,” it would appear that some of the Turkish bug’s DNA has made it into the design of the proposed NYC cab of the future. More on the “Bocek” here.

    via Will the Next NYC Taxi Come from Turkey? | EurasiaNet.org.

  • Turkey Emerges as Auto Powerhouse

    Turkey Emerges as Auto Powerhouse

    By JOE PARKINSON

    Ford Motor, which helps operate this auto plant in Kocaeli, Turkey, is expanding its joint-venture operations in the country.
    Ford Motor, which helps operate this auto plant in Kocaeli, Turkey, is expanding its joint-venture operations in the country.

    ISTANBUL—Turkey, rarely thought of as a global automotive hub, will this year overtake the Czech Republic as the biggest car maker in Eastern and emerging Europe outside of Russia, according to industry forecasts.

    Turkey is producing almost one-third more cars this year than last, said the country’s Automotive Manufacturers’ Association, in a rebound that underscores the dramatic recovery of the nation’s economy from the global financial crisis.

    Sales of cars and light commercial vehicles in Turkey were up 31% this year through November compared with a year earlier, according to figures released Monday, and manufacturers say they are struggling to meet demand.

    According to industry analysts IHS Automotive, that puts Turkey on track to produce 1.05 million vehicles this year, more than the Czech Republic or Slovakia, which, aided by low-cost skilled labor, became the car-making powerhouses of emerging Europe after joining the European Union in 2004.

    Turkey’s auto boom goes a long way to explain the country’s growing international confidence, said Ali Pandir, chief executive of Tofas, Turkey’s biggest car maker. With an economy that expanded as fast as China’s in the second quarter, politicians and companies here are expanding relationships in the Middle East and Africa, even when that causes tension with Washington or the European Union.

    “Turkey is developing into a globally competitive auto hub, largely under the radar. It has a huge domestic market and the government appears to be reforming the economy in a way investors find attractive, so its growth is likely to continue,” said John Wormald, director of Autopolis, an auto-industry consulting firm.

    Auto exports are surging. Seven out of every 10 vehicles made in Turkey are exported, and much of the expansion is coming in the Middle East and Northern Africa, helping to pick up slack for softer demand in crisis-riven Western Europe, according to data from the Turkish Automotive Manufacturers’ Association. The $22 billion auto industry employs more than 230,000 workers, and accounts for 20% of Turkey’s total exports, according to Deloitte, a financial-advisory firm.

    Chery Automobile Co. of China committed last month to build a factory to assemble cars for the European market here. Ford Motor Co. and Renault SA’s local partners are expanding operations—in Renault’s case with a commitment to build some of its new Fluence electric cars in Bursa, some 155 miles south of Istanbul.

    Other parts of the automotive-supply chain are also betting on Turkey. German auto-parts supplier Mann & Hummel Group last month said it would start production in Turkey within two years and that Istanbul would become its base for expanding operations in the Middle East and former Soviet Union.

    Still, Turkey’s car industry faces hurdles. There are no domestic Turkish brands, while sizable sales taxes on cars and gasoline have long suppressed demand. Taxes on car sales add 89% to the price of a 1.7-liter Ford Mondeo, while for a luxury car like a Ferrari the tax rises to 112%.

    Even now, many of the cars made in Turkey are slightly older designs aimed at less-wealthy buyers both here and in poorer markets.

    So far, there is no sign the government would lower auto-sales taxes. In fact, this year the taxes rose when the government removed a discount granted as part of a stimulus package during the financial crisis.

    In Turkey “people evade taxes, but they pay their taxes as they buy their cars,” said Ali Babacan, deputy prime minister for the economy at a recent conference in Istanbul. Noting that car sales are up despite a tax increase, he said he won’t be cutting them soon.

    Analysts caution that the current boom in car sales could be short-lived. “We have some pent-up demand which is flattering the market—and going forward that will be removed,” said Alper Paksoy, an analyst at EFG Securities in Istanbul.

    Yet for car makers, other trends bode well. Middle-class Turks have been getting richer quickly in recent years. Turkey’s gross domestic product per capita was just $2,900 in 2001, lower than Mexico’s, but it had more than quadrupled to $13,905 in 2009, according to World Bank figures.

    via Turkey Emerges as Auto Powerhouse – WSJ.com.

  • A futuristic taxi with global ambitions

    A futuristic taxi with global ambitions

    CNN’s global series i-List takes you to a different country each month. In December, we visit Turkey and look at changes shaping the country’s economy, culture and social fabric.

    (CNN) — It’s a long way from the streets of New York to the factories of Turkey, but this 5,000-mile journey could soon be made by all of the city’s iconic yellow taxis.

    A glass-roofed, eco-friendly vehicle designed by Turkish automaker Karsan is among the three finalists in New York City’s search for a taxicab for the future.

    New York launched the “Taxi of Tomorrow” competition to find a safe, energy efficient and accessible model. The winning design will be the exclusive New York City taxi for at least 10 years, according to city officials.

    Karsan’s V1 is the only model that was designed from scratch for the contest.

    A reflection of the country’s growing automotive ambitions, it would be Turkey’s first high-profile branded vehicle if it wins.

    So far all the cars Turkey makes are built under license for major manufacturers. Karsan, while not exactly a household name outside its homeland, makes vehicles for Hyundai, Peugeot, Citroen and Renault.

    “Having a vehicle designed and built in Turkey being used as a New York taxi would be a very strong branding opportunity for the Turkish automotive industry,” said Jan Nahum, executive director of Karsan.

    Having a New York taxi designed and built in Turkey would be a very strong branding opportunity.

    –Jan Nahum, Karsan

    “It’s an incredible source of pride and passion for us,” he said of being named a finalist. “New York is probably the most popular and visible city in the world, and its iconic yellow taxis are seen in almost every picture.”

    The Karsan V1 would be wheelchair accessible, spacious enough to hold five passengers and a stroller, and have a glass roof to give passengers a view of New York’s skyscrapers.

    It could hold a gasoline, compressed natural gas or electric engine, depending on which technology is the greenest at any time.

    Nahum said his ambition is to build taxis for other major world cities.

    “We believe in the next 10 to 15 years, other cities will follow New York’s lead in looking for a dedicated taxi responding to the needs of the city,” he said.

    The winner of the “Taxi of Tomorrow” contest will be the first ever custom-built New York taxi. There are 16 different vehicles from nine manufacturers in the current fleet of 13,000 licensed taxicabs.

    There have been many efforts to design futuristic taxicabs over the years, but “this project marks the first time ever — anywhere — that such an exercise will be backed up by an automotive manufacturer that can turn these concepts into tangible reality,” New York Taxi and Limousine Commissioner David Yassky said in a statement when the finalists were announced last month.

    The winning proposal will be announced early next year and the first new vehicles are expected to be on the road in 2014.

    The V1 isn’t the only contender in the race to have a Turkey connection. Another finalist, Ford’s Transit Connect, will be built in Turkey and adapted in the United States if it wins. Also in the running is a taxi design based on a Nissan van.

    Turkey’s prime role in the race to produce a new taxi might come as a surprise to New Yorkers, but the country is quietly becoming an automotive powerhouse. It’s the 15th largest vehicle producer in the world, according to Invest in Turkey, producing around 900,000 vehicles a year.

    According to Nahum, the industry is planning to increase its output to 2.5 million vehicles annually within the next three or four years.

    As well as home-grown companies like Karsan, many international companies, such as Fiat, Ford and Renault, have established a presence in the country, often with local partners.

    Renault announced last year that it would begin production on the electric version of its Fluence car in Bursa, the so-called “Detroit of Turkey,” in 2011.

    “The Turkish automotive industry has grown a lot in the last 10 years because manufacturers in Western Europe have seen it as a low-cost place to make cars and ship them to the European Union,” said David Leggett, an automotive industry analyst at just-auto.

    Fiat, Ford, Renault and many others have got together with local partners and made a lot of vehicles, mainly for export.

    “There’s also a lot of demand coming from Turkey’s domestic market, because the economy has boomed,” he told CNN.

    via A futuristic taxi with global ambitions – CNN.com.