POTENTIAL TO DO BUSINESS

1. POTENTIAL TO DO BUSINESS Ahmet Bayraktar Vice President TAYSAD ASSOCIATION OF AUTOMOTIVE PARTS & COMPONENTS MANUFACTURERS IN TURKEY

3. Turkey is Active in Regional and International Organisations In The Western Front An Active and Charter Member of UN and its Agencies A Member of NATO, Council of Europe, OECD, World Bank, IMF, WTO An Associate Member of the EU and in Customs Union With the EU, Candidate for Full Membership In The Eastern Front A Member of Islamic Conference and Islamic Development Bank A Member of Economic Cooperation Organization and Black Sea Economic Cooperation Region

4. Turkey Keeps up With Recent Global Economic Trends in the Region Long Practice of Global Market Economy Emerging Economy Applying the International Rules of Free Trade Such as Competition Law, Property Rights And Etc. Country Where International Capital Movements are Liberalized Up to Date Infrastructure for Commercial and Financial Activities, Telecommunication and Transportation Competitive Industrial Products for the World Market

5. The automotive industry is one of the four locomotive, largest exporter, leading investor sectors of the Turkish economy, Considering its remarkable contribution to the national production and development, to direct and indirect employment, and to the level of technology, automotive industry in Turkey is now a crucially strategic sector on economical basis.

6. As a result of the Customs Union process initiated in 1996 new conditions were created in the market. Importing became more and more relaxed, the ground was set for extreme competition. Incentives have been provided to investments concerning the manufacturing of new and modern model vehicles. Technical cooperation was transformed into � economic co � operation � as a result of increasing foreign capital shares.

7. Capacity and Production of Automotive Manufacturers 2004

8. MVI Integration ( 2004 )

12. In the 2000s, the Turkish automotive industry exhibits characteristics of an industry focusing on exporting. In 2004 with more than 10 billion $ it ranked as the second exporter industry in the economy.

13. Automotive Exports( USD � Million )

14. Exports destine to more than 170 countries

16. Nowadays, the shape and structure of Turkish automotive industry is changing. Foreign partners have begun to see the facilities that Turkey offers as their production center for their global markets.

17. In the very near future, Turkey will be ; The center of manufacturing passenger cars and commercial vehicles, and An alternative suppliers center for the global manufacturers. When investments for export oriented vehicles fully completed, Turkey will have come to a point where she will be able to export over 1.000.000.000 vehicles annually.

18. Due to the high export potential and Turkey�s regional advantages, foreign capital has been showing an increasing interest in the automotive suppliers industry in Turkey. For instance, after Toyota�s new investment project, new Japanese part manufacturing companies decided to invest in Turkey ( TOSB Area ) as well as bringing new business opportunities for local manufacturers. As of 2003 and with European Union companies pulling the lead, there are 185 foreign company partnerships in the industry.

19. Almost all components are produced in Turkey Casting Forging Engines - transmissions Power-train parts Electrical equipment Brake and clutch parts Hydraulic & pneumatic systems Body panels Wheels Mirrors Brakes Radiators Filters Springs Chassis frame and parts Seating & inner trimming & safety components Suspension systems Fixings Various plastics parts Various aluminium parts Batteries Auto glasses Wiper systems Brakes Lights - plastics & Filaments

20. Establishing production companies for producing parts and assemblies and also raw materials which are imported in existing situation. Moving the production of parts and components to Turkey to produce at lower cost, get more profit and to be competitive in global market. Establishing JV with the appropriate Turkish partner who is doing the same type of production like you. To establish service companies which maybe involved in, Research and development, Designing, Logistics, To establish testing centers, To establish tool making companies, To establish trading companies to sell raw materials from stock to first and second tier suppliers.

21. Airbags and safety systems, Polyethylene foam, Polypropylene foam ( EPP ) Special fabrics and cloths used interiors, Electronics and diagnostics, Audio and navigation equipments, Forged metal parts, Duroplastic and thermoplastic felts for interior and exterior auto parts, Quality fiberboard for car interiors.

22. Research and Development Laboratories which can run developments on contract basis and benefit low engineering cost, Design studios which can make a design on contact basis by bringing experienced personnel when needed, Logistics companies are needed who can make JIT or sequence shipment from first tier suppliers.

23. Today each supplier spends duplicate money to make tests in his company, Furthermore sends samples to European test centers losing time and money

24. Although tool prices in Turkey are half of the European tool makers due to low labor cost it is not easy to find sufficient number of qualified and experienced tool producers. Many plastic injection producers try to make their tools in house which make them to make useless investment. Especially for large trim parts tools there is no good tool maker.

25. Turkish first tier suppliers lose much of their competitiveness by importing necessary raw materials and keeping large stocks FORD / FIAT / REANAULT approved cloths for car interiors, FORD / FIAT / RENAULT approved sheet plastics, Quality steel, Sticking bands, tapes, Accessories, such as clips, springs etc used by the suppliers, Additives used in plastics

26. Turkey is the only country in its own region having already established a well-advanced automotive industry, and it has proven itself to be a successful one in exporting every kind of automotive products to EU countries. Therefore, the automotive industry is strategically important both for Turkish and foreign companies that will invest in Turkey, a country which provides More than 1.000.000 annual modern vehicles production capacity, Developed suppliers industry with the power to compete, Young, educated and motivated man - power, Entrepreneurs ambitious to succeed, Global multinational shareholders, Adopted legislation in line with the international rules of free trade within the context of customs union and WTO, Easy access to potential emerging markets, Competitive labour cost and culture of productivity.

27. Established in 1978, Only and most complete representative of the Turkish automotive suppliers industry, Member of CLEPA ( European Automotive Suppliers Association ) 185 member companies ( produce for OEM and export oriented ), Excellent reference point for local and overseas companies for purchasing products and investments in Turkey, Members have close ties with major European component manufacturers ( joint ventures or licensing agreements ), Members reached international standards in production of components at competitive cost and quality. TAYSADAssociation of Automotive Parts & Components Manufacturers

30. DAIMLER - CHRYSLER OPEL FORD VW MERCEDES TOYOTA DAF IVECO GM VAUXHALL SAAB RENAULT FIAT DACIA LEYLAND MF STEYR JOHN DEERE CATERPILLAR MACK TRUCKS DAEWOO ISUZU SAPCO BMW HONDA PEUGEOT PERKINS VOLVO IRAN KHODRO NISSAN

31. If you are looking for ; a new market for growth, new sources to increase competitiveness, a place to make a profitable investment

32. THANK YOU FOR YOUR KIND ATTENTION