Turkish automaker Tofas has signed an agreement with BBVA (Madrid/BBVA) to obtain a €276mn export credit agency (ECA) loan, including an insurance premium, according to a company stock exchange filing.

Tofas expects to utilise the facility within one month, with the loan to mature in December 2034.

Based on the estimated disbursement schedule and average maturity, the annual total cost of the loan with semi-annual principal and interest payments will range between the six-month euro interbank offered rate (Euribor) plus 2.25% to 2.35%.

Table: Tofas has announced another benchmark loan deal.

K9 investment

Tofas will plough the loan into required investments to produce new K9 light commercial vehicle (LCV) models for Stellantis. The company will invest €256mn to set up the production plant.

In September, Tofas signed a manufacturing agreement with Stellantis Europe S.P.A to produce new “K9” LCV model and “Combi” versions for Stellantis’ Fiat, Opel, Citroën and Peugeot brands on a multi-energy platform.

Production is scheduled to begin in the third quarter of 2026. Tofas will have an annual production capacity of 150,000 vehicles under the project, including completely knocked down (CKD) vehicles for assembly.

Over the course of the project, which runs through 4Q34, Tofas will produce around 660,000 vehicles, excluding the CKD vehicles, with 80% destined for the Turkish market.

In 2024, sales to Stellantis Europe accounted for 16% of Tofas's total revenue and purchases from Stellantis Europe amounted to 48% of the cost of goods sold by Tofas.

€295mn eight-year loan at
Euribor + 2.27%-2.37%

In December 2024, Tofas obtained a €295mn sustainability-linked eight-year syndicated loan at costs ranging between six-month Euribor plus 2.27% to 2.37%, with the costs depending on performance in complying with sustainability criteria.

In November 2024, Tofas signed the final agreement to produce the new vehicle model K0 light commercial vehicle (LCV) and combi versions on multi-energy platforms for Stellantis brands (Fiat, Opel, Citroen, Peugeot)

Accordingly, Tofas is targeting the production of 1mn vehicles under the deal between 2024 and 2032.

It will produce fuel and hybrid versions of the Opel/Vauxhall Vivaro (Zafira), Fiat Scudo (Combimix), Peugeot Expert (Traveller) and Citroen Jumpy (Spacetourer), according to Emre Ozpeynirci (@eozpeynirci), a local automotive journalist.

End of Egea, K0 to America

In October 2025, Tofas said that it had signed an agreement with Stellantis Europe to extend production of the Tipo/Egea model to June 30, 2026.

Additionally, it signed another agreement with Stellantis Europe to export 230,000 units of the total planned 1mn units of K0 vehicle production to North America. As a result, Tofas revised the total investment amount for the K0 model to €386mn.

The vehicles will be offered to the North American market in 2027 under the Ram ProMaster City brand.

Stellantis restructuring

In 2021, Fiat Chrysler merged with France’s PSA (Peugeot, Citroen, Opel), forming Stellantis.

In 2025, Tofas completed the acquisition of a 100% stake in Stellantis Otomotiv for a consideration of €400mn. Stellantis Otomotiv used to distribute Peugeot, Citroen, Opel and DS brand vehicles in Turkey before it was merged under Tofas.

Prior to the sale, Automobiles Peugeot S.A. held a 71% stake in Stellantis Otomotiv while Opel Automobile GMBH had 29% and Opel Europe Holding S.L. had 0.07%.

Tofas (TOASO) is a 38:38 JV between Turkey’s Koc Holding (KCHOL) and Stellantis (Milan/STLA). The remaining 24% is listed on Borsa Istanbul.

Production down, sales up

Tofas had an annual production capacity of 420,000 vehicles at its Bursa plant, including 218,000 passenger cars in addition to 202,000 LCVs.

The company increased its capacity to the 0.45mn level in 2017 from 0.4mn in 2016 and its capacity stayed at that level until 2024.

Production, meanwhile, peaked at 384,174 units in 2017. It subsequently steadily declined to 131,666 units in 2025 (9% of Turkey’s vehicle output).

Table: Tofas' vehicle production.

The company plans to produce 140-150,000 vehicles in 2025.

Despite the nosedive in production, Tofas’ sales have boomed thanks to imports, particularly following the merger with Stellantis Otomotiv.

Table: Tofas’ sales.