Otokar, IVECO sign production agreement

Otokar, IVECO sign production agreement

ISTANBUL – Demirören News Agency
Otokar, IVECO sign production agreement

Leading Turkish bus manufacturer Otokar Otomotiv has signed a five-year agreement with Italy’s Iveco Bus to produce 5,000 buses at its facilities in Turkey’s northwestern Sakarya province.

The contractual partnership covers existing models in the Iveco BUS portfolio for international distribution, as well as the production of a model specifically catered for markets in Eastern Europe, Africa, the Middle East and Asia, according to a joint statement on Feb. 25.

The models will be powered by engines from its sister brand FPT Industrial, the first of which are expected to be produced within 2021.

“We are delighted to be introducing the production of Iveco Bus models at our Sakarya plant, in addition to Otokar branded buses. It is with great pride that Otokar’s technology, engineering and manufacturing capabilities are recognized by this renowned brand in the mass passenger transport sector,” said Serdar Görgüç, Otokar’s general manager.

“Utilizing our existing facilities to manufacture Iveco Bus models will enable our plant to operate even more efficiently and effectively. While we will continue to market our buses and expand globally, we consider this manufacturing and supply agreement to be a very important and strategic first step in a long-term cooperation,” he added.

Iveco Bus, owned by London-and-Amsterdam-based company CNH Industrial, seeks to expand its manufacturing capabilities through this agreement, the statement said, adding that it will maintain all regular activities at its existing manufacturing sites around the world.

“We are very excited to embark on this new partnership, which paves the way for many opportunities in our businesses,” said Sylvain Blaise, head of the Global Bus Division at CNH Industrial.

“Thanks to this cooperation we will be able to increase our manufacturing capabilities in order to respond to current and future market demand to support our continued growth, as well as give us the opportunity to work jointly on future portfolio expansion,” he added.

“With close to 60 years of experience, Otokar’s well-regarded expertise in bus manufacturing and engineering, together with Iveco Bus’s service network and connected services,” will ensure that the two companies will deliver sustainable solutions to their customers, said Blaise.