Tofaş secures BBVA loan for new Stellantis models

Turkish car manufacturer Tofaş is pressing ahead with the expansion of its Stellantis production - and has secured fresh capital from Spain to do so. As the company explained in a statement to the stock exchange, Tofaş has agreed an export loan of 276 million euros with BBVA. The sum also includes the insurance premium for the financing. Tofaş intends to draw down the credit line within one month. The term ends in December 2034. Depending on the disbursement plan and average term, the total annual cost of the loan is between the six-month Euribor plus 2.25 and 2.35 percent, according to the company. Repayment and interest payments are to be made semi-annually. Money for the expansion of K9 production Tofaş is using the loan to finance investments in the production of new light commercial vehicles in the K9 series for Stellantis. According to the company, 256 million euros have been earmarked for the expansion of production. Tofaş had already signed a production agreement with Stellantis Europe in September. According to the agreement, the plant in Turkey will produce new K9 models and estate versions for several Group brands, including Fiat, Opel, Citroën and Peugeot. The vehicles are based on a multi-energy platform. Production is scheduled to start in the third quarter of 2026. Tofaş anticipates an annual capacity of 150,000 vehicles as part of the project, including CKD units for assembly. The company plans to produce around 660,000 vehicles by the fourth quarter of 2034 - not including CKD units. Around 80 percent of these are to be destined for the Turkish market. The close connection to Stellantis is already having a significant impact on Tofaş's business. In 2024, 16% of total revenue was attributable to sales to Stellantis Europe. At the same time, purchases from Stellantis Europe accounted for 48% of the cost of goods sold by Tofaş. Second major financing in a short space of time The new BBVA loan is not the first major financing for the expansion of production. In December 2024, Tofaş had already taken out a syndicated loan of 295 million euros linked to sustainability criteria. The cost of this financing was between Euribor plus 2.27% and 2.37%, depending on compliance with certain sustainability targets. At the time, the focus was also on expanding the model range for Stellantis. In November 2024, Tofaş signed the final agreement for the production of the new K0 light commercial vehicle and an estate version on multi-energy platforms. The vehicles are also intended for brands such as Fiat, Opel, Citroën and Peugeot. As part of this project, Tofaş plans to produce a total of one million vehicles between 2024 and 2032. According to Turkish automotive journalist Emre Özpeynirci, the company will build petrol and hybrid versions of well-known Stellantis models - including variants of the Opel/Vauxhall Vivaro and Zafira, Fiat Scudo, Peugeot Expert and Traveller as well as Citroën Jumpy and Spacetourer. North America moves into focus In October 2025, Tofaş also extended the production of the Tipo/Egea model until June 30, 2026. At the same time, the company agreed with Stellantis Europe to export 230,000 vehicles from the K0 project to North America. As a result, Tofaş increased the estimated total investment for the K0 model to 386 million euros. The vehicles are to be offered on the North American market from 2027 under the Ram ProMaster City brand. The project is thus gaining strategic importance for Tofaş beyond Turkey and Europe. Tofaş after the Stellantis reorganization Since the merger of Fiat Chrysler and the French PSA Group in 2021 to form Stellantis, the role of Tofaş has also been redefined. In 2025, the company completed the acquisition of Stellantis Otomotiv in full for 400 million euros. This company had previously distributed the Peugeot, Citroën, Opel and DS brands in Turkey. Tofaş itself is a 38:38 joint venture between the Turkish Koç Holding and Stellantis. The remaining 24 percent is traded on the Istanbul stock exchange. Less production, more turnover The Tofaş plant in Bursa has an annual production capacity of 420,000 vehicles, including 218,000 passenger cars and 202,000 light commercial vehicles. Following an expansion in 2017 to 450,000 units, capacity remained stable until 2024. Production reached its highest level to date in 2017 with 384,174 vehicles. Since then, it has declined significantly, falling to 131,666 units in 2025, which corresponds to around 9% of total Turkish vehicle production. Tofaş expects production to be between 140,000 and 150,000 vehicles in 2025. Despite the decline in production, sales increased significantly. This was primarily due to additional imports and greater integration into the Stellantis sales network following the acquisition of Stellantis Otomotiv. Tofaş is thus further expanding its course from a traditional manufacturer to a more integrated industrial and distribution partner within the Stellantis Group. The post Tofaş secures BBVA loan for new Stellantis models appeared first on ostwirtschaft.de.