Turkish automaker announces about decrease in share cost

Business Materials 21 May 2015 16:21 (UTC +04:00)

Baku, Azerbaijan, May 21

By Rufiz Hafizoglu - Trend:

Turkish automotive company TOFAS (Turk Otomobil Fabrikas) announced about the reduction of the cost of its shares by 4.42 percent, the he Turkish State Public Enlightenment Agency said.

A decrease in the company's shares will not affect the car sales volumes, the statement said.
The strike of employees of the company in the province of Bursa provoked a decrease in the cost of Tofas's shares May 16, Turkish media reported.

The employees' dissatisfaction with wages caused the strike. The number of strikers reached 4,500 people.

TOFAS's shares increased by 2.55 percent in late 2014 after the investment plans worth $1 billion concerning the production of three new models, designed for export, were announced. The production will cover 2016-2023.

Earlier, the company announced about its intention to spend $ 520 million to produce 580,000 cars of the new model sedan. A total investment volume will reach $1 billion after the new hatchback and wagon models are produced - a total of 700 million cars.

Tofas company steadily ranks second among Turkish carmakers after OYAK-Renault. Tofas was founded in 1968 by Kos local holding with the Italian FIAT company. At present, it owns 41.5 percent of the company's shares. Tofas car assembling was launched in 1971 with FIAT 124 model under the name Serce.

Kos and FIAT signed a cooperation agreement for 29 more years. It envisages the assimilation of Turkey's assembling of new FIAT models. First, the new cargo and passenger FIAT Doblo was produced. It is exported to Italy and Western Europe.

The company also continues producing old models of Sahin and Dogan sedans, as well as Kartal wagon, which are FIAT 131 modifications.

They all run on liquefied petroleum gas.

Turkey ranks sixth in the car production in Europe with Ford, FIAT, Renault, Toyota, Honda, Opel, Hyundai, Mercedes-Benz and MAN brands assembled in Turkey.

Turkey also manufactures domestic brand buses, such as BMC, Temsa and Otokar.
Today, car sales account for 14 percent of Turkey's total exports.

Edited by CN


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