Ford Otosan Gebze Engineering Facility Opens in Turkey

GEBZE, Turkey, September 26, 2007 – Ford Otosan today marked the official opening of its new Gebze Engineering Facility, which is bringing new, highly skilled engineering jobs to the Istanbul region.

With approximately 200 engineers and staff, the $1.2 million Ford Otosan Gebze Engineering Facility will provide engineering services for Ford Otosan and to Ford of Europe's primary Product Development Centres in Dunton, UK and Merkenich, Germany.

“This is good news for Ford of Europe, Ford Otosan and of course for Turkey,” said Ford of Europe President and CEO John Fleming. “The creation of this new facility is being driven by a broader expansion in our product development capacity to drive Ford of Europe’s aggressive, product-led transformation for sustained profitability."

"With Ford of Europe's sales revenue and production volume steadily increasing, we have more need for the engineering services which the Gebze facility can provide," added Fleming. "This project has for us the big advantage of being managed by Ford Otosan, which is itself based on our very successful joint venture relationship with the Koç group. So this is an excellent opportunity, with strong government support and driven by our local partners, to take advantage of the availability here of highly qualified engineers to ease the pressure in our Product Development factory."

Fleming and a group of Ford of Europe executives attended the official opening ceremonies today in Gebze. The opening ceremony was also attended by Mustafa Koç, chairman of Koç Holdings, along with officials from the Turkish government, TUBITAK (the Government department responsible for engineering development in Turkey) and Ford Otosan management.

The new facility is in the TUBITAK research park, some 40 kilometres from Istanbul. Ford of Europe is an equal shareholder in Ford Otosan with Turkey’s Koç Holdings.

A Positive Partnership

The new development is the latest chapter in the positive, 30-year partnership that created Ford Otosan, which already serves as a manufacturing source for Ford of Europe commercial vehicles. The Ford Otosan manufacturing facilities are centred in Kocaeli, approximately 80 kilometres from the new engineering facility.

“This is a major step forward for Ford Otosan,” said Mike Flewitt, General Manager of Ford Otosan. “Establishing this new technical facility underlines our commitment to Turkey as an excellent environment for business and a rich source of well-educated engineering talent. We recognised early on that Turkey was a fertile market for highly skilled graduates with technical degrees. That played a key role in the selection of a location for our manufacturing plant, and Gebze is the next step in that success story.”

Closeness to Istanbul and integration within the research park are key factors in the ability of the new facility to recruit top Turkish engineering specialists. Ford Otosan’s well established reputation in Turkish industry is also a major recruitment factor.

Engineers will provide expertise for regional Ford Otosan projects and support Ford of Europe's product development centres. Advanced technical data networking and systems will integrate Gebze into Ford's global product development team.

Gebze’s employment is expected to reach approximately 200 by mid-2008.

Establishing Leadership in Turkey

Otosan was established in 1959 as the first automotive company in Turkey. Always a leader in the Turkish automotive industry, Otosan produced the first Turkish automobile, Anadol, in 1969 and established the first engine plant in 1983.

Ford Otosan was created in 1977, when Ford and Otosan entered into a licensing agreement to produce Ford vehicles. Ford assumed a 30 per cent stake in Otosan in 1987 and 10 years later, Ford grew its ownership to equal Koç Holdings’ 41 per cent. This agreement laid the groundwork for the building of a new automotive plant in the Marmara Region of Turkey whose significance has grown in importance for Ford.

Today, Ford Otosan assembles for Ford of Europe the 2007 International Van of the Year, the Ford Transit (which is also produced at Ford's Southampton plant in the UK). The Ford Otosan range also includes the Cargo heavy truck. Additionally, Ford Otosan operates a Parts Distribution Centre in the Kartal district of Istanbul that is one of the largest facilities of its kind in Turkey.

The new development reflects the continued growth of the industrial economy of the Turkish nation. Turkey has established a significant automotive sector, which contributes to its gross domestic product and its export profile.

Source: Ford Motor Company

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