Turkey’s Ford Otosan plant in Kocaeli aims to become the US carmaker’s electric vehicle hub in Turkey with the launch of its Ford Transit Custom EV that is expected to launch in Q1 2023.
Ford Otosan plans to spend TRY 20.5bn (€2bn, $2.4bn) on next-generation commercial vehicle production through 2026 and the Turkish government is facilitating some state-based financed incentives.
Apart from the financing through the Turkish government, the European Bank for Reconstruction and Development (EBRD) has also given a €650mn loan ($768mn) to Ford Otosan. The investment will finance next-generation all-electric custom commercial vehicles.
The financing is shared with a €175mn loan from the EBRD directly and €475mn in debt syndicated via other lenders. Several European and two Chinese banks are among the lenders.
The company will also proactively work to improve its supply chain and suppliers by better integrating their participation into its production methods.
Ford Otosan is a joint venture between the US Ford automaker and Koc Holding. The new expansion will create 3,000 new jobs once fully operational.