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Turkey became the ‘Plan B’ of the Germans in procurement

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Turkish Automotive representatives, carrying out their activities in cooperation with the Association of Vehicles Supply Manufacturers (TAYSAD) and the Automotive Exporters’ Association (OIB) to strengthen the presence of the Turkish automotive sector in global markets, returned to Germany, their most valuable export market, with good news from two other visits they made in the last month. .

Seeing that German companies are looking for an alternative market, the representatives of the sector learned that Turkey was the first at this point. However, companies in Turkey will have to switch to environmentally friendly production in just a few years to seize this opportunity. As of January 1, 2023, the supply chain law, which imposes various sanctions on companies against the environment and human rights, will come into effect.

According to the news of Aysel Yücel from the World, TAYSAD Leader Albert Saydam and Turkey Automotive Promotion Cluster Project Head Alper Kanca conveyed the value of these visits and the valuable results.

About two weeks ago, a roundtable meeting was held with members of the press and high-level brands of Germany’s leading automotive, while on the other hand, senior managers of leading brands such as BMW and Porsche were visited. Then, last week, the Car Symposium, known as the “Davos” of the automotive industry, brought together the most valuable leaders of the department, for the first time. The German Automotive Promotion Cluster, which is part of Turkish Automotive and led by OIB Board Members Gökhan Tunçdöken and Alper Kanca, opened its stand for the first time at this meeting. The Turkish Automotive delegation, who had the opportunity to meet with the top managers of both the main industry and Europe’s leading supplier companies, also had the opportunity to make a presentation about the Turkish automotive section. Sector talked about Turkey’s option against supply problems in a seminar attended by 30 different companies.

BMW WILL BE ENVIRONMENTAL FROM 2025

First, Porsche, and then the automotive giant BMW, which was an asset, was visited. A round meeting with foreign journalists and valuable representatives of the automotive sector was also held. Albert Saydam stated that Porsche and BMW officials welcomed the Turkish delegation with interest, and that negotiations were held for these companies to increase their purchases from Turkey. As TAYSAD and OIB, it was explained how further cooperation with the Turkish automotive industry would benefit them. In addition, investment opportunities in Turkey were explained. A valuable result of these negotiations is that the determining factor in the procurement selection of the German giants has changed. Albert Saydam said, “Previously, quality, speed and price were the decisive factors in the selection of procurement at BMW. But at the moment, we heard from both companies that environmentally friendly production and use of green power exceeds all criteria. This was one of the most valuable information I gained on this trip.” BMW plans to make all its factories 100 percent “green” by 2025, and even its suppliers. At this point, Turkish companies are considered to be advantageous. Alpar Kanca said, “For the first time, we have seen how determined they are in this bet and how close the process is. Now, not only in the press release, that is, in the CEO’s statements, but also middle and lower level managers are concretely expressing that they will only work with environmentalist companies in the very near future.”

NEW SUPPLY LAW CONCERNS

One of the most important factors that lead German companies to environmentally friendly production is the new supply chain law that will come into effect in the country in the near future. This is a very new development now, and there are ongoing debates in parliament to step back. According to the new law, as of January 1, 2023, there will be sanctions against the environment and human rights for businesses with more than 3,000 people in Germany. These companies will be held responsible for the damage they cause to nature or human beings, and those who act adversely will be punished. In the next phase, companies will also be held responsible for their suppliers. Therefore, it will be difficult for companies supplying modules from China, Thailand, Vietnam and some African countries. In this regard, Alper Kanca said, “East Turkestan factories may cause problems for German brands as of January 1, on the grounds of human rights violations.” Branch representatives underlined that if the suppliers in Turkey take real steps, they can turn this new item into an opportunity.

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