Integrated Report 2022
MAIN PAGE | TR
PRODUCED CAPITAL

Tofaş is a global player in manufacturing that offers competitive solutions on a worldwide scale. With its widespread dealer network, trustworthy supply chain, and diverse range of brands and products, Tofaş has the ability to address a variety of customer needs. The company is committed to reaching a broad audience and continually works to deliver the best value for its customers.

2022 AT A GLANCE

PRODUCTION

Tofaş Bursa ranks among the top three plants according to the results of a Stellantis Production System assessment of the OHS, quality, and efficiency performance of its operations. In order to continually enhance its competitive edge, Tofaş prioritizes productivity-oriented digital optimization applications and smart factory initiatives. The company also adapts its production practices so as both to benefit from advances in technology and to align itself with market demand.

A leading production center whose advanced technology, digitalization, quality, and efficiency resources enable it to supply competitive solutions throughout the world, Tofaş conducts its production operations at a plant with 411,193 m2 of indoor space occupying 1 million m2 of grounds in Bursa Turkey. This plant manufactures Fiat Egea Sedan, Hatchback, Station Wagon, Cross, and Cross Wagon models as well as Fiorino vans.

The 263,747 vehicles that Tofaş produced in 2022 corresponded to 19.5% of the Turkish automotives industry’s total output.

PRODUCTION (UNITS)

2018

2019

2020

2021

2022

Egea

147,859

146,103

151,736

116,679

134,844

Doblò

104,198

76,529

68,798

77,520

85,021

MCV

49,693

41,565

30,096

34,345

43,882

Total

301,750

264,197

250,630

228,544

263,747

EXTENSIVE DEALERSHIP NETWORK

The dealership network for the brands which Tofaş represents sells new vehicles, second-hand vehicles, and spare parts and also provides maintenance & repair services. Nearly all Tofaş dealers qualify as “integrated”, which means that customers can find sales, services, and spare parts at a single location. Many Tofaş dealers also provide customers with such additional services as compulsory and optional motor vehicle insurance coverage and vehicle financing.

All 71 of the Fiat dealers in the network also service the company’s Alfa Romeo, Jeep® and Maserati brands. With the inclusion of the satellite and authorized service points not associated with the premises of the network’s dealerships, there are 102 Fiat sales points and 130 Fiat service points located all over Turkey. There are also 21 Alfa Romeo-Jeep® main dealerships, together with another five locations that only service the vehicles. The number of Maserati dealerships is three.

By interacting with sales representatives in real time through the company’s digital channels, prospective Fiat, Alfa Romeo, and Jeep owners can visit showrooms, check vehicles out, and make purchases without having to leave home.

As part of the Fiat Barrier-Free Movement program, infrastructure additions incorporated into the Fiat and Fiat Professional websites in 2022 make it possible for people with hearing disabilities to interact with a dealer without the need for anyone else’s assistance. Tofaş intends to bring all the dealership and service-outlet venues associated with any of its brands into compliance with its accessibility-standards by 2026.

Customer Satisfaction

Tofaş aims to maintain continuously high levels of customer satisfaction through its advanced logistics and distribution competencies and its mature after-sales services capabilities as well as thanks to the long term, trust-based business relationships that it establishes with its dealers.

Tofaş regularly surveys its customers to ensure that it is satisfying their needs and expectations. In addition to the company’s sales & after-sales process solutions aimed at ensuring customer satisfaction, Tofaş is mindful of protecting consumer rights at all times and under all conditions. Tofaş is committed to meeting the needs and expectations of its customers in the best possible way by complying with all applicable legal and regulatory requirements as well as with corporate governance principles.

Customer satisfaction is both achieved and continuously improved thanks to a customer relationship management system that was created with the involvement of customers, dealers, and authorized service centers in 126 locations across Turkey.

Developed with a focus on improving the customer experience, Tofaş’s in-service vehicle tracking system, which allows customers to track the real-time maintenance & repair progress of their vehicles on digital displays, has been installed in waiting-rooms.

In line with the Tofaş brand’s promise of “speed”, the company has introduced a “Quick-Service” feature that reduces the time customers need to spend at a service center while waiting for maintenance and repair work to be done. Customers who book an appointment for one of the services in the “Quick Service” menu are guaranteed to get their vehicles back within an hour.

Tofaş prioritizes vehicle safety and quality in all its processes and supports the development of smart vehicles. This is in line with Stellantis’s vision of ensuring the vehicular-traffic safety of everyone and it is aimed at providing comfort and security for the driver. In line with this, innovations are created and developed so as to comply with the standards and legal requirements of the markets in which they will be operating.

To ensure the safety of drivers, passengers, other road users, and pedestrians, Tofaş has recourse to both active and passive safety measures. Passive safety systems protect passengers in the event of an accident while active safety systems are intended to prevent accidents from occurring in the first place. Tofaş makes use of data science and learning algorithms that analyze driver and vehicle data in order to develop preventive measures capable of anticipating potential accidents and vehicle malfunctions.

Tofaş incurred no penalties or warnings in 2022 related to any violations of laws and regulations related to any detrimental impact of its products or services on human health or safety. Tofaş had no instances of non-compliance with product and service information and labeling regulations or guidelines in 2022. Additionally, Tofaş incurred no penalties or warnings for non-compliance with any advertising, promotion, sponsorship, or other marketing & communication regulations or voluntary guidelines.

Fiat Connect Kasko

Tofaş offers comprehensive insurance policy services at service stations to improve customer satisfaction and loyalty. Two key concerns in policy pricing are fairness, that is, ensuring that policyholders are not penalized for having vehicles that have not been used for a long time; and cost recovery, that is, reflecting the costs of those responsible for losses in policies’ terms. To develop its “Intelligent Insurance” business model, Tofaş uses chatbots, RPA, and connectivity technologies to base pricing on real-world vehicle-use data. Tofaş partners with Aksigorta to offer personalized insurance policies based on customers’ driving habits. This has resulted in cost savings and benefits such as avoiding unnecessary or excessive premium payments. By encouraging safe driving and increasing customer satisfaction, this solution informs a business strategy that focuses on data in the automobile insurance sector and provides value to all partners.

EXTENSIVE BRAND & PRODUCT PORTFOLIO

Fiat

Tofaş represents six brands in its home market: Fiat, Fiat Professional, Alfa Romeo, Jeep®, Maserati, and Ferrari.

Egea

The Fiat Egea Sedan first appeared on roads in Turkey and around the world in 2015. Collaboratively engineered by Tofaş R&D Center and Stellantis with Tofaş directly involved in every aspect from concept design to product development and marketing, the Fiat Egea commands a place of special importance not just for Tofaş but for the Turkish automotive industry as a whole.

The Fiat Egea is offered in a wide range of body types: Sedan, Cross, Cross Wagon, and Station Wagon. Featuring best-in-class handling characteristics and equipped with connectivity technologies not found in its class at all, the Fiat Egea successfully fulfills its “A good car should also be affordable” mission. Manufactured in Bursa and exported all over the world under Fiat Tipo brand, Fiat Egea was voted “Best-Buy Car Of The Year in Europe” at AutoBest 2016. Fiat Egea succeeded in becoming Turkey’s most popular automobile for seven years in a row between 2016-2021. In 2021, Egeas with facelifted body options and the Egea Cross went on sale. The Egea Cross was voted Turkey’s “Car Of The Year” by the Automotive Journalists Association in the year it was put on sale.

In 2022, the Egea Cross Wagon was added to the Fiat Egea lineup. Automatic-transmission and hybrid-engine equipped versions of Egea’s Sedan, Hatchback, Cross, and Cross Wagon models were put on sale. Tofaş’s Egea Hybrid is equipped with a 1.5 liter 4-cylinder turbo petrol FireFly engine with 130 HP power and 240 Nm torque together with a 15 kW electric motor powered by a 48-volt battery.

500

Ably combining its sixty years of inherited DNA with new trends in design and timeless style, the Fiat 500 is a recognized icon of the automotive world. In 2022, HB Dolcevita and Cabrio Dolcevita versions of the Fiat 500 with a more economical and ecofriendly 1.0-liter Hybrid 70 HP MT engine option were put on sale. 

500L

Going on sale in 2013, the 500L combines “multipurpose family car” and “crossover” characteristics in a single model with its roominess, functionality, attractive design, and drive features.

In 2022, the 500L model was offered in two Cross body versions–the Cross and Cross Plus–both equipped with a 1.4-liter petrol manual-gearbox engine.

500X

Put on sale in 2015, the Fiat 500X is the 500 family’s crossover member. Fiat 500X’s quality, technology, active and passive safety features, and comfort options position it as one of the boldest offerings in the crossover segment. “Soft Top”, a new special-edition version of the 500X designed for drivers who are looking for performance, went on sale in 2022. Fitted out with sports-car body features, this new model comes with a 1.3 liter 150 HP 270 Nm torque engine and an automatic transmission. 

Panda

On sale in Turkey ever since its introduction in 2004, Panda’s convenience of use on city streets, relatively larger dimensions for its class and superior functionality make it a preferred choice. In 2022 a new version of the Panda with “City” level equipment and hybrid-engine options was put on sale. Now offered with “City”, “Urban”, “Cross”, “Cross 4x4”, and “Cross Plus 4x4” equipment-level options, this Fiat Panda combines fuel economy and performance with a 1.0 liter 3 cylinder 70 HP hybrid engine. 

Fiat Professional

Doblò

With its durability, performance, and usability constantly being improved for over two decades, the Doblò is the front-runner of Turkey’s small commercial-vehicle class. The Doblò has been hailed as commercial vehicle of the year many times since its introduction. A strong player in Turkish and European professional markets, a version of the Doblò was introduced to the North American market in 2015 under the name RAM ProMaster City. A one-ton payload, roomy interior, and economical engine options in a range of body types make the Doblò the preferred choice of large families as well as of tradesmen and artisans. 

Fiorino

The Fiorino is the outcome of a Tofaş Minicargo project that represents a milestone in the company’s history. In continuous production at Tofaş since 2007, the Fiorino remains one of the most popular offerings available in Turkey’s light commercial vehicle market. Coming in 1.3 liter Multijet 95 HP diesel, 1.4 liter 77 HP petrol, and 1.4 liter petrol factory-exit LPG-convertible engine versions, the Fiorino is capable of addressing a wide range of driving needs. Its compact design suitable for city driving, onboard technology, and fuel economy make it the preferred choice of both businesses and ordinary drivers.

Pratico

As the “compact pickup” model of the Fiat commercial vehicle family, the smart design and maneuverability of Pratico make it easy to drive in city traffic. Sharing the same platform as the Fiat Doblò, the Pratico stands apart from other models in its class by virtue of its sheet-metal aluminum body and its 1.6-liter 120 HP engine options all conforming to the Euro 6d emissions standard. A loading capacity of up to a ton and 4.2 m2 of cargo space that is fully accessible from every door also make the van highly adaptable to city life. 

Ducato

The Ducato distinguishes itself in the spacious-interior van segment for four decades with its front-wheel drive, high load capacity, and versatility.

Continuous development of the Ducato by Fiat over the years has resulted in more than 10 thousand variants of it being sold in more than 80 countries around the world since its introduction. Offered with a 140-160 HP range of engine and 9-speed fully-automatic transmission options, the Ducato’s high-performance technology and safety features set it apart in its class. Van, pickup, and minibus body options mean that the Ducato can meet the needs of commercial-vehicle customers whatever their business may be. The Ducato Co-Driver is equipped with Level 2 autonomous driving capabilities that include adaptive cruise control, autonomous emergency braking, and lane keep assist without the need for driver intervention.

Alfa Romeo

Tonale

Signaling a momentous change in a brand that has had a singular impact on automotive history while remaining faithful to the badge’s heritage ever since 1910, the Alfa Romeo Tonale combines sports-car DNA and cutting-edge technology and electrification. Awarded a five-star Euro NCAP safety rating, many Level-2 autonomous driving features that boost driving safety are standard on the Tonale. Turkish-market offerings of the Tonale come with automatic transmission and three equipment levels (Sprint, TI, Veloce) and are fitted either with a new 1.5 liter 160 HP 240 Nm hybrid turbo petrol engine or with a 1.6 liter 130 HP 320 Nm torque diesel engine.

Stelvio

Alfa Romeo set a new milestone in its 107-year history with the 2017 introduction of Stelvio, its first offering in the SUV market. Offering the best acceleration performance in its class, Stelvio distinguishes itself from its rivals by virtue of its Q4 AWD traction system and its perfect weight balance. What’s more thanks to its first-class technology and innovative platform, Stelvio achieved a 5-star Euro NCAP rating by racking up 97 out of 100 safety points for adult occupants. 

Giulia

Outstanding in its class by virtue of its unrivaled Italian stylishness and superior reliability while also achieving a perfect balance between form and function for an excellent driving experience, Alfa Romeo Giulia made its first appearance on the Turkish market in 2017. Giulia brought a new point of view in the sports sedan segment with its interior and exterior design features, state-of-the-art technology, high-quality materials, and superior performance.

Jeep®

Compass

First introduced to the Turkish market in 2017, the Jeep® Compass was given a comprehensive makeover in 2021 with the addition of new design, technology, and safety features. The new Compass carries forward the 80-year heritage of the Jeep® brand with an array of product features, driving dynamics, and onboard technology that meet the needs of today’s consumers. The Compass uniquely distinguishes itself in its class by supporting the characteristic design and driving dynamics of the Jeep® brand with advanced safety and connectivity features. 

Wrangler

Wrangler, unquestionably one of the most important and iconic models in the history of the Jeep® brand, is equipped with a 2.0-liter 272 HP petrol engine combined with an 8-speed automatic transmission and provides superior 4x4 capabilities and comprehensive safety features. With its superior ground clearance and approach and departure angles, the Wrangler is considered to be the best in its class in terms of off-road capability. The Wrangler’s water-fording depth of up to 76 cm makes it the most reliable deep-water-capable vehicle in its class as well. 

Renegade

Designed in the USA and built in Italy, Renegade is the smallest, most talented, and most energetic member of the Jeep® family’s offerings in the SUV class. Having first entered the Turkish market in 2014, an enhanced, more dynamically-designed version of the Jeep® Renegade equipped with innovative tech, new engine options, and advanced safety features went on sale in Turkey in 2019. Offering an extensive range of engine and feature options chosen to meet the needs of its segment ever since its introduction to the market, a Jeep® Renegade optionally equipped with a 4xe PHEV engine also made an appearance in 2021. The 1.3-liter electric and turbocharged petrol engine of the 4xe can produce 240 hp. as the only rechargeable hybrid in its segment, the Renegade 4xe can provide all-electric driving thanks to its hybrid powertrain and 11.4 kWh battery.

Lancia

In line with strategic decisions, all models in Lancia series have been dropped except for Ypsilon, which continues to be sold in Italy. Sales of Lancia vehicles were therefore suspended in Turkey in 2015, though after-sales services will of course continue to be provided.

SUPPLY CHAIN MANAGEMENT

Ever since the day it was founded, Tofaş has always given great importance to increasing localization and to reducing import-dependency in the Turkish automotive industry. In order to contribute to the growth and development of a domestic automotive components-manufacturing sector, the company procures an average of 75% of its inputs other than engines and gearboxes from suppliers based in Turkey.

Tofaş is exploring ways to increase that figure to 90% by 2030.

Competitively positioned as a production & manufacturing base, Tofaş will continue to focus on superior-quality localization to support the global competitiveness of its supply chain in Turkey as it moves forward. As Tofaş continues to strengthen its position within Stellantis, it will better undertake the vital role of leveraging the development of its suppliers in Turkey.

Tofaş is committed to creating and maintaining a supply chain that is financially robust, operationally eco-aware, and reliable from the standpoints of production quality and continuity. Acknowledging that its suppliers are as crucially important to its value chain as its own employees are, the company contributes to suppliers’ continuous development by helping them to achieve organizational excellence and to improve their business productivity and success while also strengthening Tofaş’s own sustainability culture throughout its supply chain.

Tofaş not only assesses the sustainability risks posed by its operational processes but also aims to anticipate, manage, and monitor environmental, social, and economic risks that might arise across its entire supply chain. The goal of these processes is to develop anticipatory action plans using the most efficient and innovative methods available.

Tofaş provides financial and operational support to its suppliers to help them manage sustainability risks. The company assesses their performance on the basis of specifically-stated criteria.

To identify financial risks in its supply chain, Tofaş Financial Risk Management conducts audits with the help of an independent (third-party) organization. In addition, social and environmental risks in the supply chain are also identified through efficient and comprehensive audit reviews. After these audits, action plans to help suppliers improve their performance are developed and put into effect.

The IMDS system is used to check all components provided by submanufacturers and suppliers for the presence of lead, mercury, cadmium, and hexavalent chromium to ensure their compliance with EU Directive 2000/53/EC. Additionally, all inputs used at Tofaş comply with the Global Automotive Declarable Substance List (GADSL) standard and contain no prohibited chemicals.

Tofaş’s procurements consist mainly of outsourced direct inputs, components, and industrial services. The total budget value of all procurement-related purchases in 2022 was EUR 3 billion. Tofaş works with over 3,000 suppliers in its procurements of goods and services; it also purchases direct inputs from 152 suppliers located in 14 cities across Turkey.

Supply chain diversity

Tofaş works with an extensive and complex supply chain from which, in the main, it procures preformed sheet metal components, forged & cast machined components, mechanical & electromechanical components, electrical installments, molded plastic and rubber components, seats, door panels, vehicle glass, glove compartments, bumpers, mufflers, chemicals, interior & exterior trim, and connectors. In order to ensure and support the continuity of its manufacturing operations, Tofaş also engages in a broad range of service and other procurements such as capital goods and related services, contractor services, maintenance & repair services, training & consultancy services, hardware and services. Owing to the importance of supply-chain continuity, a multifaceted risk-management approach is prioritized in the conduct of purchasing processes and of supplier relations.

Improvements in Procurement Processes

Whenever Tofaş considers the procurements aspects of its new projects, it gives particular attention to acquiring the latest technological abilities for the Turkish automotive industry on the one hand and to boosting its own competitive strength on the other. In line with this, Tofaş encourages international firms that are global manufacturers of automotive components to invest in Turkey or to enter into joint ventures with local suppliers.

Green Procurement

Tofaş’s Green Procurement efforts are grounded in a philosophy both of fostering a culture of sustainability through the company’s supply chain and of drawing attention to products and services whose environmental impact is lower. The goals of the Green Procurement program are to reduce the environmental impact of Tofaş’s suppliers’ production and service-provision processes, to improve its suppliers overall environmental performance, and to help reduce environmental risks.

Tofaş formulated an Environmental & Social Control Mechanisms Policy for its suppliers in 2022 with the aims of creating action plans for the environmental & social auditing of all of its domestic direct-materials suppliers and of completing such audits by 2025. By 2030 Tofaş also aims to have increased the CDP-solicited response rate to climate-change and water-security questionnaires among its domestic direct-materials suppliers to at least 10% and to have reduced the carbon footprint of its supply chain by 55% as per the Paris Agreement.

In pursuit of its Green Procurement objectives, Tofaş has selected twelve firms which together account for 45% of all the waste created, 39% of all the water used, and 34% of all the carbon emissions generated by its entire supply chain. As a result of visits made to these suppliers’ premises and of the subsequent analyses of current-situation findings, more than 100 actions for improving environmental-impact and energy-efficiency performance were identified. As of 2022, 80% of these actions had been completed and improvements of up to 50%–especially in environmental performance–had been achieved.

Robotic Process Automation

The Procurements and Supply Chain Departments continue their efforts to increase competitiveness by simplifying business processes using up-to-date methods and through their digitalization. In line with this, 32 Robotic Process Automation (RPA) projects related to Tofaş’s operational processes were commissioned in 2022.

Materials Procurement Process Automation (Control Tower)

In 2022 Tofaş commissioned a new supply chain management system that makes it possible for materials procurements and associated decision-making processes to be fully automated through the deployment of algorithmic control. Called “Control Tower”, this new system’s digital simulation and optimization algorithms make it possible to view all logistical movements and to make decisions about what to do if unplanned events occur. Control Tower accesses information contained in different databases using such tools as RPA, Phyton, and SQL. Besides improving efficiency, Control Tower also ensures process continuity in the event of uncertainties or emergencies. The Control Tower system’s scope will continue to be expanded in 2023.

Prospective Supplier Application Portal

A Tofaş Prospective Supplier Application Portal that was opened in 2021 allows firms wishing to become a Tofaş supplier to submit their applications online. By keeping a digital record of such applications, the platform makes it possible for both suppliers and Tofaş to explore and evaluate new business opportunities.

Industrial Cost Effectiveness Project (ICE)

Tofaş’s Industrial Cost Effectiveness (ICE) project was initiated in 2021 with the aims both of developing its submanufacturing suppliers’ understanding and appreciation of cost-effectiveness and of incorporating their ideas into cost-optimization processes. Proposal-related ideas submitted through the ICE system by the suppliers who made the proposals are collected and compiled by the system and used as input for cost-optimization.

Supplier Development

In the conduct of all of its procurements operations, Tofaş focuses on establishing and maintaining business-partner relationships while making efforts to help its suppliers to enhance their performance in many different areas such as product design, organizational and technical improvements, quality, cost-improvement, physical and financial risk mitigation, manufacturing process improvement, collective procurement, and sustainability. Tofaş’s primary goal is to create a proactive and autonomous procurements process.

Since 2009, Tofaş has been encouraging its suppliers to take part in the World Class Supplier (WCS) program, which involves employing WCM methods in the conduct of their own operations. In the Stellantis’s WCM ranking of the hundreds of suppliers with which it works globally, four of Tofaş’s domestic suppliers are in the top eleven and have attained “Bronze” status.

All of Tofaş’s direct-inputs suppliers hold ISO 14001 Environmental Management System certification.

GoTECH Technology Summit

The fifth in the series of annual GoTECH technology summits that have been held since 2018 to support suppliers’ efforts to improve their technological capabilities took place in 2022. Conducted with the aim of creating synergies among suppliers on the one hand and public agencies and organizations, domestic technology-suppliers, and innovative startups on the other, the summit was convened under the auspices of Tofaş Academy. Recently commissioned digitalization project winners were also announced during the summit. Also shown off was a new model for incentivizing project partnerships on which Tofaş and the Small and Medium Enterprises Development Organization worked together and which facilitates supplier incentive and rebate processes

Connected Supplier

“Connected Supplier” is Tofaş’s name for a process that brings suppliers, startups, and technology-providers together in an ecosystem that develops digital projects capable of supporting Tofaş suppliers. Improvements made in the Connected Supplier process last year resulted in 250 new ideas being put forth and the commissioning of 85 projects that had been identified as being feasible.

Predictive Supplier

Under Tofaş’s Predictive Supplier Initiative, robust solutions are created to reactively deal with defects while machine-learning technology based on parameter-tracking and forecasting input is used at process points where defects occur. During 2022, solutions were developed at three different suppliers for three different processes. Expansion of twelve of the projects that were undertaken in 2021 improved part defect-detection and intervention performance.

Digital Maturity Assessment

To support the digitalization efforts and processes of its suppliers, Tofaş began measuring the value-adding and digital-maturity levels of its suppliers in a project undertaken jointly with the Turkish Metal Industries Employers’ Association’s MEXT Technology Center. The digital-maturity levels of 34 Tofaş suppliers had been measured as of end-2022.

GRI 3-3, 204-1, 301-1, 301-2, 301-3, 414-1, 414-2, 416-1, 417-1