Turkish automaker Tofaş announced that its board of directors has approved its "mini cargo facelift" project for light commercial vehicles (LCV) with Fiat Chrysler Automobiles (FCA) Italy, reports Reuters. In a written statement to the Public Disclosure Forum, the company revealed that the project will run between 2016 and 2021 with a planned production of 260,000 vehicles, a considerable portion of which will be exported. According to the report, around USD70 million in investment will be made for the first production phase, scheduled to begin in the first quarter of 2016 at its facility in Bursa, Turkey.
Significance: The investment will facilitate the shift of the Florino LCV from the TYPE 199 platform to the Small/SUSW platform in 2017. Tofaş is a joint-venture (JV) between Turkey's Koç Holding and Italy's Fiat and is a core partner in FCA's LCV strategy. Tofaş and FCA announced last year that it was investing USD1 billion to produce its Linea replacement and three new cars in Turkey mainly destined for export. Turkey has one of the biggest auto industries in Europe, although its domestic automotive market has been one of the most volatile in the world as a result of the country's economic instability. The automotive industry has become increasingly important in Turkey over the past decade as automakers have sought low-cost manufacturing near to Europe. The Turkish government has been eager for the automotive industry in the country to continue to develop as it attempts to turn it into an export hub. As European markets stabilise, automakers operating in Turkey are rolling out new models and expanding capacity to tap into the rising demand.
