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Why did Ford move Transit production to Turkey?

Ford shifted a substantial portion of Transit production to Turkey through its Ford Otosan joint venture to localize manufacturing, reduce costs, and speed delivery to European customers by leveraging Turkey’s location and a skilled industrial base.

The decision fits Ford’s broader strategy of regionalizing production, strengthening supply chains, and tapping the capabilities of its Turkish partner. The following sections outline the drivers, how the shift was implemented, and what it means for Ford, Europe, and the global auto industry.

Background: Transit production footprint

The Ford Transit has long been a central model in Ford’s commercial-vehicle lineup, with production spread across several European plants and regional facilities. In Turkey, Ford Otosan has become a key hub for Transit production, benefiting from a long-standing collaboration between Ford and Koç Holding that centers on capability, scale, and integration with supplier networks.

Key drivers behind the move

What drove Ford to centralize Transit production in Turkey? The following factors shaped the decision:

Local production at Ford Otosan facilities helped lower unit costs through favorable labor economics and a tightly integrated supplier network.

Proximity to major European markets reduced transport times and logistics costs, improving delivery reliability for fleet customers.

Access to a skilled workforce and ongoing investments in modern manufacturing technologies at Turkish plants.

Strategic use of Turkey’s customs framework with the EU, facilitating efficient export to Europe and other adjacent markets.

Diversification of Ford’s global production footprint to spread risk and better align with regional demand cycles for commercial vehicles.

In short, the move aimed to increase efficiency, resilience, and market access by anchoring a large portion of Transit production in a capable regional hub.

Implementation and current status

The transition involved expanding and upgrading Ford Otosan’s Turkish facilities to handle Transit production at scale, aligning with Ford’s global supply chain and meeting European customer requirements for variety, quality, and safety standards. The Turkish plants are organized to supply a large share of European demand, while Ford maintains a broader, multi-regional production footprint for different configurations and markets.

Impacts and implications

The shift affected workforce distribution, supplier relationships, and logistics planning across Ford’s European operations. Supporters argue that localization enhances resilience, reduces lead times, and lowers total costs for fleet customers, while critics note potential impacts on employment and industrial balance in other regions. Ford emphasizes that the move strengthens collaboration with its Turkish partner and investment in Turkey’s manufacturing ecosystem, contributing to a more robust, regionally focused supply chain.

These dynamics illustrate how large automakers continuously recalibrate where and how vehicles are built to stay competitive in a rapidly changing market environment, influenced by demand patterns, currency considerations, and policy frameworks.

Current status and outlook

Today, Ford Otosan’s Turkish plants remain a central pillar of Transit production, integrating advanced manufacturing capabilities with Ford’s global product strategy. The arrangement supports ongoing adaptability to fleet demand, configuration options, and regional export needs, while Ford continues to monitor market conditions and adjust capacity where needed to balance cost, speed, and reliability.

Summary

Ford moved a substantial portion of Transit production to Turkey to capitalize on local manufacturing strength, reduce costs, and improve European market delivery through a regionalized, integrated supply chain. The shift reflects a broader industry trend toward localization and resilience, leveraging Ford Otosan’s capabilities and Turkey’s strategic location to support Ford’s commercial-vehicle business in Europe and beyond.

Why did Ford move to Turkey?

It is estimated that more than 2.2 million Transits have been made in Southampton in the past 40 years with production now switching to Turkey, where Ford said costs were ''significantly lower'' than anywhere in Europe, even after delivery charges.

Why is Ford discontinuing the Transit?

Ford is not discontinuing the large Transit van, but it is ending sales of the smaller Transit Connect in North America after the 2023 model year due to decreased demand and a strategic focus on reducing costs and complexity. The Transit Connect will continue to be sold in Europe. Additionally, the specialized Transit Trail package was recently discontinued because of supply chain issues and a lack of demand, though this is separate from the discontinuation of the base Transit Connect in North America.
North America discontinuation (Transit Connect)

Declining demand: Sales for the compact van segment, including the Transit Connect, have fallen significantly, making it unprofitable for Ford to continue.
Strategic shift: Ford is prioritizing cost-saving, efficiency, and its electric vehicle (EV) offerings as part of its global restructuring plan.
Other manufacturers followed suit: Other companies, like Ram with the ProMaster City, have also discontinued their small vans in the U.S.
Larger Transit remains: The larger Ford Transit van, which is built in the U.S., will continue to be sold.

Transit Trail package discontinuation

Supply chain issues: Ongoing supply chain challenges and part availability constraints made it difficult to produce the Transit Trail package.
Prioritizing parts: Ford decided to remove the package for the 2025 model year to prioritize delivering parts and service for vehicles that already have it.

Are Ford Transits made in Turkey?

For the European and many international markets, almost all Ford Transit cargo vans are manufactured at the Kocaeli plant in Gölcük, Turkey. This state-of-the-art factory, operated by Ford Otosan - a joint venture between Ford Motor Company and Koç Holding — has been the main production hub for the Transit since 2013.

Where are Ford Transits made now?

Ford Transits are made in multiple locations, including the Kansas City Assembly Plant in Missouri and the Ohio Assembly Plant in Avon Lake, Ohio for the North American market, and the Kocaeli plant in Gölcük, Turkey for the European and other international markets. Additionally, some Transit models, like the Transit Custom, are produced in China by Jiangling Motors.

You can watch this video to take a tour of the Ford Transit factory in Kansas City, Missouri: 14sLeisure Travel VansYouTube · Aug 9, 2018
North America

Kansas City Assembly Plant, Missouri: Assembles a significant number of Transit vans, including the E-Transit electric version.
Ohio Assembly Plant, Avon Lake, Ohio: Also produces various Ford Transit models.

Europe and International Markets

Ford Otosan plant in Gölcük, Turkey: This is a primary production hub for the European and many international markets.
Jiangling Motors plant in China: Produces some Transit models, such as the Ford Transit Custom, for markets in China and other regions.
Nordex S.A. in Montevideo, Uruguay: Assembles Transit models for the local market.

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.