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The automotive and parts sector are important segments of Turkey’s manufacturing base, as well as the overall economy. Turkey leads the CEE region in the volume of automotive units it produces. Local production appears set to increase, with large investments, manufacturing facility upgrades, as well as global players adding new models to the ranges they already produce at Turkish facilities. With more than 40,000 employees, automotive OEMs are one of the major employers in Turkey’s manufacturing industry, representing brake systems through to glass and fuel systems.

The Turkish government has identified the automotive industry as a key strategic sector, introducing strategic reforms to encourage development, as well as increase competitiveness. These include revising the tax system to encourage eco-friendly and electric vehicles, as well as offering incentives for automotive investments over certain amounts, or for investments made in specific geographic areas. Two of the government’s broader objectives include establishing Turkey as an automotive production and export hub, as well as launching mass production of an indigenous car brand. The Turkish Automotive Parts Industry Association (TAYSAD) has indicated that it intends to expand its focus to include new markets, such as Iran, India and China.

Moroğlu Arseven assists clients involved with all aspects of the automotive and parts supply, distribution and repair chains. These clients include manufacturers, distributors, suppliers, and agents. Our clients manufacture and distribute both original and aftermarket automotive parts, for local use, as well as for export. The firm actively keeps up with local and global trends or developments in these sectors, allowing us to proactively advise clients about key issues and risk mitigation strategies.

The firm’s integrated approach means automotive clients receive a full range of commercial, regulatory, competition, financing, tax, customs and intellectual property advice, tailored to the industry and also to their specific position in the supply chain.

Moroğlu Arseven has a significant track record supporting clients to establish, maintain and terminate distribution networks, including all related negotiation and dispute resolution.

Moroğlu Arseven regularly advises on processes and requirements for Turkey’s Ministry of Industry and Technology, the Directorate General for Industrial Products Safety and Inspection, as well as the Ministry of Trade. We strategically support and represent clients during all aspects of their interactions with these bodies, assisting clients to obtain a wide range of routine and exceptional approvals, exemptions or licenses. Our support includes dealing with day-to-day regulatory relations, as well as high-stakes regulatory investigations or enforcement proceedings.

The firm’s dispute resolution team provides full-scope and integrated support to automotive clients, meaning conflict specialists are involved from the early stages of emerging issues. We support clients with all aspects and perspectives on disputes, along with regulatory investigations. Support includes representing clients in a full spectrum of forums and related processes, including civil and administrative litigation, arbitration and alternative dispute resolution methods, strategic negotiation and settlement processes, as well as injunctions and enforcement actions. For instance, representing clients involved in disputes about distribution, dealer and licensing arrangements, as well as product liability and negligence claims.

Moroğlu Arseven’s strong intellectual property team helps automotive clients to proactively protect their intellectual property in Turkey. The firm supports with a full range of issues, including litigation, enforcement, counselling, prosecution and transactions. Intellectual property advice is tightly integrated with other practice areas, assisting clients to establish, protect and commercialise their intellectual property assets from the earliest possible stage. For instance, combatting counterfeit spare parts and lookalike products, or infringement of design rights. We also assist with addressing software copyright infringement, such as within GPS, diagnostic or infotainment systems.

Moroğlu Arseven assists automotive clients with all types of major corporate transactions, including mergers, acquisitions, joint ventures, strategic partnerships, spin-offs, divestitures and group restructures. The firm has significant expertise assisting during complex, inter-jurisdictional transactions, where strategic guidance is required to deal with the legal, commercial and operational factors simultaneously. These projects often involve high values, or complicated leveraging and equity structures. We work closely with companies, shareholders, investors and financiers on both buy and sell-side, assisting through all stages of these projects. Moroğlu Arseven places a strong focus on ensuring we consider each client’s business objectives and the dynamics of the automotive industries, then reflect these factors into the transaction’s structure, risk allocation, or asset transfers.