Ford Otosan Commercial Vehicles



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

22 Mar 2017



PSD disclosed:

02 May 2017

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The Bank originally provided a EUR 150 million long-term loan to Ford Otomotiv Sanayi A.S. in 2017 to finance the investment programme for the upgrade of Ford Otosan's Transit commercial vehicles as part of its medium term investment programme at its plant in Kocaeli, Turkey. ("Original Project")

The EBRD is extending an additional EUR 25 million long-term loan in favour of Ford Otosan to finance the Company's additional working capital needs stemming from the COVID-19 related measures. ("Extension Project")

Project Objectives

The Original Project provided financing for the mid-cycle facelift of Ford Otosan's Transit model commercial vehicles at the Kocaeli manufacturing base, helped create an ecosystem of skilled and certified workforce in the automotive industry and contributed to the Bank's ongoing dialogue with the Turkish authorities on inclusion, the opening up of economic opportunities to previously under-served social groups.

The key objective of the Extension Project is to preserve the gains achieved through the Original Project with Ford Otosan signed in April 2017.

Transition Impact

ETI score: 75

The Original Project is on track to achieve a strong transition impact in Turkey in relation to youth economic inclusion in the automotive industry, particularly through (i) transfer and dispersion of skills via improved technical and vocational education and provisioning scheme; and (ii) setting standards for corporate governance and business conduct by contributing towards the Bank's ongoing inclusion policy dialogue initiative in Turkey that facilitates a direct engagement between the private sector and Turkish education authorities to education authorities to improve technical and vocational skills standards in the country in line with employers' needs.

The Extension Project will support the Company in the continued delivery of the transition impact objectives of the Original Project.

Client Information


Ford Otomotiv Sanayi A.S. (the "Company", or "Ford Otosan") is a joint stock company incorporated and domiciled in Turkey that manufactures, assembles and sells motor vehicles and parts under the Ford brand.  

Established in 1959, Ford Otosan operates as a joint venture between Ford Motor Company (via Ford Deutschland Holding GmbH: 100% owned by Ford Motor Company) one of the leading and best-selling automobile brands globally, and Koc Holding, Turkey's largest conglomerate active in a variety of sectors from automotive to consumer durables, each holding a 41% equity stake. The rest of the Company shares are listed on Borsa Istanbul.

EBRD Finance Summary

EUR 175,000,000.00

Total Project Cost

EUR 465,000,000.00


Extension Project is provided in the extraordinary circumstances of the COVID-19 crisis. The Bank's additionality stems from provision of long-term working capital to a long-standing client in the automotive sector during the COVID-19 crisis.

Environmental and Social Summary

Original Project Categorised B (2014 ESP). The Environmental and Social Due Diligence (ESDD) for the project showed that the environmental and social (E&S) impacts associated with the project are site specific, and readily identified and addressed through established mitigation measures. The Company operates world class manufacturing facilities and is already largely compliant with the Performance Requirements (PR) through implementation of corporate management systems and progress against existing Environmental and Social Action Plan (ESAP). A comprehensive, independent environment, health and safety and labour due diligence was conducted for the project, in combination with visits from Bank staff, and an updated ESAP has been developed to structure the project and existing operations fully in line with the PRs.

The ESDD included a site visit to the Company's manufacturing and assembly bases in Kocaeli (Golcuk and Yenikoy factories), interviews with EHS and HR management teams, interviews with workers, meetings with the trade union representatives, and a document review and follow up calls with the Company representatives.

The ESDD showed that the Company has well-developed EHS and HR systems, and the capacity to fully implement the Bank's PRs. Environmental and occupational health and safety issues are managed through an integrated management system (IMS) certified to ISO 14001; ISO 14064 Greenhouse Gases Quantification and Verification System Standard; ISO 50001 Energy Management System Standard; ISO 9001; and OHSAS 18001 standards at all operations. The necessary resources and capacities are in place to implement the IMS. Environmental targets are transferred into individual business targets through a scorecard practice, and the results achieved influence the performance based remuneration of employees of all levels. The primary targets are adopted in compliance with the Ford Global Environmental Operating System EOS (which has specific KPIs on reduction of energy consumption, water consumption, eliminated waste, VOC emission). Also, an Environmental Compliance Index (ECI) scorecard is monitored at the group level.

Ford Otosan employs a total staff of approximately 10,500 people, the majority of which are members of trade unions. The Company's Code of Conduct complies with the United Nations Global Compact, of which Ford Motor Company and Koc Holding are signatories. The Company has initiated an Equal Opportunities programme which aims to prevent gender discrimination and promote equal opportunities for women in business life.

The Bank reviewed labour issues in detail at the Company, including identification and management of labour issues in the supply chain; their communication with workers and the unions; and how grievances and disputes are managed on day to day basis. According to the workers interviewed as part of ESDD, the Company has taken measures to improve working conditions and relationships with the stakeholders including the employees and the union in the recent years including; direct selection of workers' representative by workers; strict control on overtime and working hours; effective employee engagement and complaint management both by the company and by the union; additional social events; bonuses; career development opportunities through vocational training and certification programmes; training of team leaders/managers on employee communication and leadership skills; and psychological training and support provided under the Employee Communication Programme in Emergency situations (ODIP programme). The Metal Industrialists Union (MESS) representing automotive companies including Ford Otosan and the Turkish Metal Union (Turk Metal) signed the new Collective Bargaining Agreement on 30th January 2018 which will last two years.

Ford Otosan's EHS standards also apply to its contractors and suppliers through a Ford Corporate Certification Process. This is verified via a contractor and supplier selection process; risk assessment and management procedures; as well as supplier development support. The company will conduct systematic HR audits to address labour issues in its contractors' operations as part of the ESAP.

The internal grievance mechanism available for employees will be enhanced to address the complaints of the contractor workers, as well as the direct company workers. Going beyond the Bank's requirements, the company is considering applying for SA8000 certification with an aim to comply with good international practice in the management of labour issues at its facilities.

In terms of environmental performance, the Company operates in line with the requirements of the Turkish Regulatory Framework, which is largely in line with EU Environmental Directives. All emissions are monitored and are within prescribed limits. The production process has a high degree (29 per cent) of water recycling and reuse. Hazardous and non-hazardous wastes are recycled or reused at 99.16 per cent and 100 per cent rates (2016) respectively. Energy demand is high and as such, various energy efficiency investments have been implemented, with the Company having an ISO 50001 certified energy management system. This has been coupled with various resource efficiency initiatives. GHG emissions are assessed regularly (certified to ISO 14064) and disclosed via the CDP and annual sustainability report. Current annual GHG emissions are 201,015 tonnes CO2e which represents 0.6 tonnes CO2e /car (decrease from 0.82 tonnes CO2e /car baseline year 2009). Water and energy consumption and GHG emissions per vehicle are decreasing year on year in line with the company targets.

Ford Otosan has high standards in occupational health and safety, which is managed through an OHSAS 18001 accredited management system. The Golcuk facility has been upgraded over the years and has all necessary fire prevention and response equipment in place. The facility is located in an isolated fenced area and no significant negative impacts to communities are expected.

Ford Otosan discloses E&S information through its annual GRI/G4 standard sustainability report and through its website. As a listed company, Ford Otosan discloses certain corporate and operational information through the public disclosure platform. In addition, the company engages with other operators and stakeholders in the local area through regular meetings, newsletters, etc.

Existing stakeholder engagement practices and communication channels are deemed sufficient to communicate the nature of the project to stakeholders. The company will disclose information about the project, including relevant E&S information. In addition, Ford Otosan will review its external grievance mechanism against Bank requirements and publish its availability, including contact details, on its website and in its sustainability report.

Extension Project Category B (2019 ESP). Low to medium risk.  Due diligence for the Extension Project with this long standing client has involved a review of previous questionnaires, Annual Environmental and Social Reports and publicly available documentation on the client's EHSS performance. The Company has a sophisticated series of EHSS risk management systems which are aligned with the Bank's Performance Requirements.  There are no additional actions which require to be agreed in a new ESAP.  The client will be required to continue to operate to the standards of the PRs and provide annual reporting to the Bank.

Technical Cooperation and Grant Financing

The technical cooperation was funded from Inclusion Technical Assistance Framework through the 2016 sources of the Bank's Shareholder Special Fund. The technical cooperation services will be used to support the economic inclusion via improved transition from training into employment for young people in the automotive industry. Up to EUR 125,000 will be used for the development of a 'Vocational Education Model' and an inclusion action plan to address some of the key operational challenges related to the skills mismatch in relation to three areas: internships and work-based learning; skills standards development and verification; partnerships with technical and vocational education and training institutions and local education authorities in the automotive sector.

No additional technical cooperation funds were utilized for the implementation of the Extension Project.

Company Contact Information

Burak Çekmece, Treasury & Risk Manager
+ 90 216 564 71 00
Akpinar Mh. Hasan Basri Cd. No:2 34885 Sancaktepe / Istanbul

PSD last updated

21 Jul 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

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Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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