Marriages of convenience to decline?
Oyak has an established tradition of partnerships with foreign companies. In 1969, it started a joint venture with Renault to create a car manufacturer, Renault Oyak. Axa Oyak is another Franco-Turkish liaison that came into life in 1999, while the Steag-Oyak collaboration Isken has supplied Turkey with 7% of its energy since 2004.
These joint ventures provide benefits to both partners. While the foreign players brought in the expertise and a brand name, they profited from Oyak’s local experience and established presence. Renault was one of the beneficiaries of Oyak’s intimate knowledge of the market, when the fund convinced the car maker to invest while Turkey was hit by severe economic crisis. The fund was proven right in its optimism. “They bring in the knowledge and the brand name. We know Turkey,” sums up Ulusoy.
In the past, this was a valuable asset to foreign companies trying to break into the Turkish market.
In the times when rules and regulation are wanting, this could prove an invaluable asset to foreign companies trying to break into the Turkish market.