Tüv Süd to launch its business in Turkey via franchising
Tüv Süd, a German company carrying out compulsory vehicle tests, has signed an agreement with the Turkish government allowing it to carry out MOT inspections in Turkey. The company has announced that the business will be run under the name Tüvturk and that it is planning to have set up a nationwide network of almost 200 service centres by the end of 2008. The consortium, consisting of Tüv Süd, Dogus Grubu and Akfen, will be carrying out vehicle tests according to German standards for an exclusive 20-year period. The majority of the Tüvturk centres are to be run by franchisees
“Tüv Süd is looking to generate around one-third of its income from abroad – the Tüvturk project means we have taken a big step towards achieving this,” commented Dr Axel Stepken, board chairman at Tüv Süd AG. The company will – together with the importer, Dogus Grubu, and the infrastructure specialists, Akfen – be investing 633 million euros in Turkey. The three partners each hold a third of the shares in the business and are expecting to achieve a turnover of eleven billion euros during the contractual period.
The project is the result of the Turkish government’s new road policy. By changing technical requirements to meet European standards, the Government is looking to improve safety on Turkish roads. Almost 3,400 people die in traffic accidents in Turkey each year – a much higher figure than in the EU where the average number of deaths per country lies at 1,900. The decision to privatise compulsory vehicle tests had come about as a result of the country adopting EU Directive 96/96/EU.