Ford Otosan, the Turkish joint venture of Ford Motor Co. (F), announced that it has opened a new production facility in Yenikoy, Turkey, to produce 2 new vehicles. Ford celebrated the occasion with members of Koc Holding, its joint venture partner in Turkey, and many government representatives.
Ford Otosan is a 55-year old joint venture between Ford and Koc Holding. Ford Otoson has made an investment of $511 million in the Yenikoy plant, which will be producing Transit Courier small commercial vehicle and Ford Tourneo Courier entry-level people-mover, which will be sold in 46 countries.
The Yenikoy plant is located near Ford Otosan’s existing Kocaeli vehicle assembly plant and spreads across 70,000 square meters. It is the third Ford Otosan plant manufacturing Ford vehicles. The plant produces vehicles using the same advanced and environmentally friendly manufacturing technologies that are used by Ford in its global production facilities. It is expected that the plant will produce 110,000 vehicles per year.
Ford Otosan was given the responsibility to manufacture two new vehicles for the completely revamped/renewed Ford commercial vehicle and people-mover range. The vehicles produced in the new plant will compete in growing market segments. The company expects this move to open up future growth opportunities.
Ford Otosan is one of the most successful partnerships in the auto industry and the initiation of production at the Yenikoy plant will further strengthen the relationship. At present, Ford Otosan manufactures the Cargo heavy truck, the Transit and Transit Custom medium commercial vehicles, the Tourneo Custom people-mover, the all-new Tourneo Courier entry-level people carrier and the Transit Courier small commercial vehicle. The joint venture exports Ford vehicles to 106 markets globally.
Ford currently carries a Zacks Rank #3 (Hold). Fox Factory Holding Corp. (FOXF), Tata Motors Ltd. (TTM) and Fuji Heavy Industries Ltd. (FUJHY) are some better-ranked automobile stocks worth considering. Fox Factory and Tata Motors carry a Zacks Rank #1 (Strong Buy), while Fuji is a Zacks Rank #2 (Buy) stock.
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