"As Schmitz Cargobull Turkey, we can swiftly solve the demands."
First of all, we have to separate our production model in Turkey from our production model in Europe. Our business model here consists of the assembly of semi-assembled products. The equipment that forms the body arrive here readily produced with its chassis and then, we conduct the final assembly of the vehicle here. Of course, we will begin to make it more detailed and start assembling the chassis in detail.
"When we manufacture a new configuration vehicle, we always send it back to Germany for tests."
This is our production model for here; however, in Europe, we do it by starting from scratch. Refrigerated vehicles may be configured in various ways according to customer expectations in terms of not just certification but also the load and on-board load-safety systems. In Turkey, we manufacture products that are highly demanded in the market. When we manufacture a new configuration vehicle, we always send it back to Germany for tests. We get all of its certification figures re-tested there.
We don't just test its quality in Germany. Schmitz Cargobull already has its own sense of quality and it won't release the vehicle unless it is at a certain point. However, at this point, certification is even more important that quality. When everything is completed at our factory, we send it back once again for the same certification. We manufacture either the maximum configuration or if we receive a different configuration, we still manufacture it here and then send it back to Germany for recertification and tests.
"We keep all the spare parts here. We don't have any issues about that."
As Schmitz Cargobull, we keep the spare parts of all products that we import or complete assembly here. We don't have any issues about that. However, as we're talking about various different models, we may directly import some of them instead of producing them here. For example; when a customer orders a certain amount of a very special vehicle, if it is an order that wouldn't be ordered by another customer, we don't manufacture it here at our assembly line. If it is a configuration that is already manufactured at the Germany factory, we directly import it from Germany.
Even though the timelines may change according to the required equipment, we can quickly solve such demands. We have all the parts in stock for both mounted equipment and the infrastructure groups. For the panels in the mounted equipment group or the panel components and equipment, we have all kinds of spare parts for all sorts of variables. In short, we have the spare parts in stock for all the products we manufacture. Let's say a vehicle is involved in a major accident and needs a complete side-wall replacement, it has to be repaired with a supply from the Germany factory.
For below medium-scale damages like if we have to completely replace the side wall or the entire roof, it takes some time to remanufacture it. Especially in our case, it may be a bit tricky to talk in advance as it will be imported from Germany. However, we have spare panels for reparable damages. We have spares in various thicknesses for the chassis, equipment, roof and side panels. We don't have problems with any of these.
TELEMATICS AND SATELLITE TRACKING
In terms of my own experience in the sector, I believe that we should separate telematics from satellite tracking systems. Various international companies track their vehicles using satellite tracking systems through other suppliers. The products carried inside these systems on refrigerated vehicles are highly valuable and these are mostly food products. That's why they must be transported with care. When its doors are left open, the inside temperature begins to rise and the refrigerator doesn't activate; it has to warn the driver or make him check whether there is a malfunction. Telematics is a heavily used option in Europe. As we begin to switch to refrigerated transportation in Turkey along with the slow introduction of legal requirements, we will be at an indispensable position. Currently these systems can't be used consistently in Turkey every day. Like I said, the sector always confuses satellite tracking systems with telematics. I have even seen companies in the sector that have developed their own software but still ask us about a lot of technical issues. There are also companies that add a few options to satellite tracking systems and track them with cameras. We have a few transportation companies that have, especially during the transition to 4.0, developed softwares that warn the driver when the door is left open. We hear about them and follow what they're doing; however, currently there aren't any 100 percent activated telematics systems in Turkey.
SCHMITZ BEGAN PRODUCING ITS OWN REFRIGERATION UNIT
Refrigerator is a topic that should be discussed separately. Schmitz Cargobull manufactures a refrigeration unit; however, we didn't bring any refrigeration engines to Turkey for refrigerated vehicles. Our refrigerator concept is provided as a complete concept with the vehicle's long-term maintenance package. We currently don't make such sales in Turkey. That's why we continue to serve with comparable brands, sometimes with the preferred brand of the customer and sometimes through our own refrigerator service. Actively, we don't have anything started about refrigerators. We haven't started it neither on our production nor import vehicles. However, there is such a concept at Schmitz Cargobull; it just didn't begin for our region. Our colleagues are making all the necessary preparations for that and it will be slowly introduced.
"We hope that the current negative impacts we see today, will turn positive in the future."
The negative impact of today's currency also reflects upon the market; everyone can now interpret and see it. Our vehicles have very high Euro currency entry costs. That's why the purchasing costs have increased a lot for the domestic market customers if you look at the TL currency value of a product that is sold in Euro currency. At this point, it wouldn't be realistic to expect investment from especially our domestic market transportation group customers. When you look at Turkey's own dynamics, you can see that it is a developing and constantly growing country. We hope that the current negative impacts we see today, will turn positive in the future. Of course, these delayed investments or postponed demands will one day come up again. Maybe we will all see normal currency exchange rates and much more normal interest rates. That's why it is very hard to make estimates about three or four quarters in the future.
"We will continue to assemble and manufacture in Turkey."
As you know, there are a lot of factors that affect the economy. We will assess the situation through those factors; however, we did not make any changes to our own business plan. We will continue to assemble and manufacture in Turkey by taking certain steps. For example, we are now introducing certain products completely based on volume. We expect them to have a certain number of sales supporting them and then slowly take the next step. We will shape both the localization degree and level of capacity according to the real conditions brought by the market.
It is very hard to manage things in such extraordinary times and we have to be patient. As a manufacturer, of course the hard times of our customers will become our hard times as well. I believe that we will all get through this period together.
In short, I would like to say that nothing will be perfect or nothing will always be positive throughout this projected period. It is impossible and in fact, that's not how a normal human life works. From time to time, there will always be adverse conditions. We will experience things outside our plans. However, that won't be a stop. What we're experiencing is a total journey. We will continue to walk down the path we've decided as part of our plan. Perhaps these days will delay our plans a bit more; however, will we cancel them? No! We stand behind our decision and we will continue our presence here. We shall keep fighting, we're here and yes, we're not going anywhere!
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