Are you curious about the latest move of one of the world’s largest automotive manufacturers? Stellantis has recently made headlines with its strategic decision to streamline business operations by selling off its Turkey distribution unit to Tofas. This bold move is expected to bring significant benefits both for Stellantis and Tofas, as well as for their customers in Turkey. Read on to discover more about this exciting development and how it could impact the future of the automotive industry!
Stellantis Streamlines Business Operations by Selling Turkey Distribution to Tofas
In a move to streamline its business operations, Stellantis has sold its Turkey distribution business to Tofas. The sale includes all of Stellantis’ Turkish assets and liabilities, including its distribution center in Istanbul.
The move will allow Stellantis to focus on its core businesses in Europe and North America. It also marks the end of Stellantis’ presence in the Turkish market.
Tofas is a leading automotive distributor in Turkey. The company has a strong track record of success and is well-positioned to continue growing the Stellantis brand in the country.
We are confident that this move will be beneficial for both Stellantis and Tofas. We would like to thank our employees in Turkey for their dedication and hard work over the years.
Tofas Acquires Distribution Rights for Turkey
Tofas, a subsidiary of Fiat Chrysler Automobiles, has acquired the distribution rights for Turkey from its parent company. The move is part of a larger effort by Stellantis, the newly formed holding company of Fiat Chrysler and Peugeot, to streamline its business operations.
Turkey has been a major market for Fiat Chrysler, with the Italian-American automaker selling nearly 300,000 vehicles there last year. Tofas will continue to sell and service Fiat, Jeep, and Alfa Romeo vehicles in Turkey under the new agreement.
The acquisition of the distribution rights by Tofas is expected to be completed by the end of March. Financial terms of the deal were not disclosed.
Stellantis Sells Distribution Rights to Tofas
Stellantis has announced that it has reached an agreement to sell its Turkey distribution business to Tofas. The move is part of Stellantis’ ongoing efforts to streamline its business operations and focus on its core strengths.
Under the terms of the deal, Stellantis will sell its 80% stake in Stellantis Turkey Distribution (STD) to Tofas for a total of EUR€150 million. STD is a joint venture between Stellantis and Turkish conglomerate Koc Holding. The sale is expected to close in the first quarter of 2021, subject to regulatory approvals.
Tofas is a leading automaker in Turkey with a strong track record of success. The company manufactures and sells Fiat, Lancia, Alfa Romeo, Jeep, and Dodge vehicles in Turkey. Tofas also has a significant presence in the European market, exporting vehicles to over 50 countries worldwide.
With this move, Stellantis strengthens its partnership with Tofas while also freeing up resources to invest elsewhere. The sale of STD is part of Stellantis’ larger strategy to streamline its business operations and focus on its core competencies.
Tofas to Distribute Turkey Globally
Tofas, the Turkish automaker owned by Fiat Chrysler, will be responsible for distributing Fiat vehicles globally. The move is part of a larger effort by Stellantis, the newly formed company that results from the merger of Fiat Chrysler and Peugeot, to streamline its business operations.
Tofas has been manufacturing Fiat vehicles for export since 1984 and currently has a production capacity of over 300,000 vehicles per year. The automaker also has a network of over 1,000 dealerships in Turkey.
The agreement between Stellantis and Tofas is part of a strategic alliance that was first announced in 2019. Under the terms of the alliance, Stellantis will provide Tofas with technology and engineering support, while Tofas will manufacture and distribute Fiat vehicles globally.
Conclusion
This marks the latest move by Stellantis in its effort to streamline business operations and create greater efficiency for the company. By selling the car distribution rights in Turkey, it is able to focus on other aspects of its global market while also freeing up capital that can be reinvested in new projects. With this transaction, Tofas gains a foothold in the luxury segment as well as access to Stellantis’ impressive network of dealerships and technical expertise. Moving forward, both parties will benefit from this arrangement and we look forward to seeing what else Stellantis has planned for 2021.
