RUNNING A TECHNOLOGY
COMPANY IN TURKEY
Dr Umut Genç
AVL Turkey
AVL Global
Confidential
| AVL Research and Engineering Turkey 2016 |
2
AVL IS AN AUTOMOTIVE ENGINEERING
COMPANY
Confidential
| AVL Research and Engineering Turkey 2016 |
3
ENTERPRISE DEVELOPMENT AUTOMOTIVE
RESEARCH 10% of
GLOBAL FOOTPRINT
STAFF
turnover in-house R&D
 8,050
INNOVATION 1500
 65%
granted patents
employees
engineers &
scientists
GROWTH
1.500
1.250
1.000
750
500
250
0
1998
Confidential
2001
engineering locations
 >220 test beds
 Global customer support
network
EXPERIENCE
Mio. €
1995
30
2004
2007
2010
2013
2016
SALES
 1995:
0.15 billion €
 2015:
1.27 billion €
 prev. 2016:
1.41 billion €
More than
years !
65
5 powertrain
elements
ONE
PARTNER
| AVL Research and Engineering Turkey 2016 |
4
AVL – TECHNICAL CENTERS
POWERTRAIN ENGINEERING
Ann Arbor, USA
Basildon, UK
Coventry, UK
Haninge SWE Södertalje
HQ Graz, AUT
Shanghai CN
Seoul, KOR
Moscow
Dehli-Gurgaon, IN
Plymouth, USA
Tokio
Nagoya
Istanbul, TUR
Lake Forest, USA
Sao Paulo, BRA
Sydney, AUS
3500+
Engineers
250+
Test Beds
Paris, FRA
Confidential
Neuenstadt, GER München, GER Regensburg, GER Stuttgart, GER Ingolstadt, GER
Remscheid, GER
| AVL Research and Engineering Turkey 2016 |
5
AVL Turkey
Confidential
| AVL Research and Engineering Turkey 2016 |
6
AVL TURKEY
Established
R&D Center 2
in Istanbul
2016
Founded
2008
2015
Established
R&D Center 1
in Istanbul
Confidential
Team of 100+
engineers, with mostly
MSc and PhD degrees.
| AVL Research and Engineering Turkey 2016 |
7
AVL TURKEY
Confidential
| AVL Research and Engineering Turkey 2016 |
8
Why and How Turkey?
Confidential
| AVL Research and Engineering Turkey 2016 |
9
TURKEY AS A COMPETITIVE CENTER
Incentives
Public
Funds
BETTER
COST
Developing
Country
Top 10%
University
Graduates
Large
Pool
COMPETITIVE
CENTER
Central
Experts
available
LOCATION
PEOPLE &
SKILLS
Local
Market
Industrial
Base
Language
Skills
Confidential
Global
Culture
Infra
structure
Megacities
| AVL Research and Engineering Turkey 2016 |
10
LOCATION
 Good location at cross section of continents
 Big local market with 78M customers
 High number of young people
 Several Megacities (Istanbul has 15M people)
 Good infrastructure
 Air travel and number of connections
 Very good highways
 4G coverage – mobile internet
 Broadband internet
Confidential
| AVL Research and Engineering Turkey 2016 |
11
BETTER COST
 Developing Country – Lower Cost of Living (Not EU)
 Strong incentives
 Technology Parks
 No income Tax
 Reduced Social Security Contribution
 No Corporate Tax
 R&D Centers
 Reduced income Tax
 Reduced Social Security Contribution
 Reduced Corporate Tax
 Project Specific R&D Funds
 Each R&D project could be subsidized up to 60%
Confidential
| AVL Research and Engineering Turkey 2016 |
12
BETTER COST
Example of Techno Parks
€ 2,000
Total Add-on Cost to Company
€ 1,800
Normal
With Incentives
€ 1,799
Savings
€ 1,600
€ 1,536
€ 1,400
€ 1,272
€ 1,200
€ 1,000
€ 800
€ 600
€ 791
€ 200
€ 968
€ 500
€ 409
€ 400
€ 382
€ 1,227
€ 964
€ 701
€ 572
€ 572
€ 572
€ 468
€0
€ 952
€ 1,200
€ 1,429
€ 1,905
€ 2,381
Net Salary per Month
Confidential
| AVL Research and Engineering Turkey 2016 |
13
PEOPLE & SKILLS
 High number of young professionals
 200 Universities in Turkey
 50+ universities in Istanbul
 Leading universities teach in English
 Many Turkish people go to EU or USA for Masters / Phds
 Large pool of western companies operating in the country
 Many experienced professionals in the market
 Can-do attitude & Entrepreneurial spirit
Confidential
| AVL Research and Engineering Turkey 2016 |
14
SUCCESS FACTORS
Business Case
• Think Local and Global
• Grow local market
Leadership
• Local knowledge is key
Choose the right location / city
• Objective of the business
Network and Consultants
• Trusted advisors / lawyers / accountants
Utilize incentives and funds
• Lower costs
Confidential
| AVL Research and Engineering Turkey 2016 |
15
THANK YOU
www.avl.com