Tofaş Secures BBVA Loan for New Stellantis Models

The Turkish automaker Tofaş is continuing to expand its production for Stellantis—and has secured fresh capital from Spain to do so. As the company explained in a statement to the stock exchange, Tofaş has agreed to an export credit of 276 million euros with BBVA. This amount also includes the insurance premium for the financing.

Tofaş plans to draw down the credit line within a month. The term ends in December 2034. Depending on the disbursement schedule and average term, the total annual cost of the loan ranges between the six-month Euribor plus 2.25 to 2.35 percent, according to the company. Principal and interest payments are to be made semi-annually.

Funds for expanding K9 production

Tofaş will use 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 setting up production.

Tofaş had already signed a production agreement with Stellantis Europe in September. Under the agreement, the plant in Turkey is to manufacture new K9 models as well as station wagon versions for several group brands, including Fiat, Opel, Citroën, and Peugeot. The vehicles are based on a multi-energy platform.

Production is scheduled to begin in the third quarter of 2026. As part of the project, Tofaş anticipates an annual capacity of 150,000 vehicles, including CKD units for assembly. By the fourth quarter of 2034, the company aims to produce around 660,000 vehicles—excluding CKD units. About 80 percent of these are intended for the Turkish market.

The close ties to Stellantis already have a significant impact on Tofaş’s business today. In 2024, 16 percent of total revenue came from sales to Stellantis Europe. At the same time, purchases from Stellantis Europe accounted for 48 percent of the cost of goods sold by Tofaş.

Second major financing in a short period

The new BBVA loan is not the first major financing for the expansion of production. As early as December 2024, Tofaş had secured a syndicated loan of 295 million euros linked to sustainability criteria. The cost of this financing ranged between Euribor plus 2.27 and 2.37 percent, depending on compliance with certain sustainability targets.

At that time, too, the expansion of the model range for Stellantis was the focus. In November 2024, Tofaş signed the final agreement to produce the new K0 light commercial vehicle and a station wagon 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 manufacture a total of one million vehicles between 2024 and 2032. According to Turkish automotive journalist Emre Özpeynirci, the company is set to build gasoline 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 the Citroën Jumpy and Spacetourer.

Focus Shifts to North America

In October 2025, Tofaş also extended production of the Tipo/Egea model through 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 set to be offered on the North American market starting in 2027 under the Ram ProMaster City brand. This gives the project strategic significance for Tofaş beyond Turkey and Europe.

Tofaş after the Stellantis restructuring

Since the merger of Fiat Chrysler and the French PSA Group in 2021 to form Stellantis, Tofaş’s role has also been redefined. In 2025, the company completed the acquisition of Stellantis Otomotiv for 400 million euros. Previously, this company had 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 revenue

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 through 2024.

Production reached its all-time high in 2017 with 384,174 vehicles. Since then, it has declined significantly, falling to 131,666 units in 2025, which accounted for approximately 9 percent of total Turkish vehicle production. For 2025, Tofaş expects production to range between 140,000 and 150,000 vehicles.

Despite the decline in production, sales rose sharply. This was primarily driven by additional imports and greater integration into the Stellantis sales network following the acquisition of Stellantis Otomotiv. Tofaş is thus continuing to expand its transition from a traditional manufacturer to a more integrated industrial and sales partner within the Stellantis Group.