Ford plans to increase its investment in Turkey, reports the Investment Support and Promotion agency of the country's government. The company will increase its total investment in Turkey during 2011–14 to USD1.6 billion, from USD1 billion announced earlier. Since 2011, Ford has invested more than USD1.2 billion in the country to date. The company will invest the remaining amount of USD340 million in its Turkish operations this year. In Turkey, Ford operates through a joint venture (JV) with Turkish conglomerate Koc Holding. The JV, Ford Otosan, has two plants in the country, in Golcuk and Inonu. Ford currently produces only light commercial vehicles (LCVs) in Turkey, including the Transit and Transit Custom vans.
Significance: The move is part of Ford's four-year investment plan in Turkey and has not been affected yet by the recent economic turmoil facing the country. The long-term strategic investment involves establishing a new vehicle manufacturing plant, capacity upgrades, launching new vehicle models, and boosting research and development (R&D) activities. Ford's third plant in Turkey, located in Yenikoy, will become operational in April, and it will begin rolling out the Transit Courier van for export in more than 110 countries. Furthermore, the company's plant in Golcuk will begin manufacturing an unnamed Transit van this year, taking the plant's annual output to around 290,000 LCVs. Meanwhile, at its Inonu plant, Ford is currently carrying out a heavy-truck manufacturing and engine development project for its global markets. The company plans to invest USD100 million to develop and produce 11- and 13-litre engines for use in Ford's Cargo heavy trucks. Additionally, Ford's new 60-million Turkish lira (USD30-million) R&D facility in Sancaktepe, Istanbul, is scheduled for completion in 2014. The company claims that the facility will be the largest automotive engineering centre in Turkey, solely focusing on automotive design and development. The centre will employ 1,500 people, most of whom will be engineers.
