We stand by you every kilometer of the way... 28 Do¤ufl Otomotiv Annual Report 2007 7,5% The retail market share of Volkswagen Passenger Cars increased and reached 7.5% in 2007 306 Do¤ufl Otomotiv Annual Report 2007

2007 proved yet again the importance, success and strength of Volkswagen Passenger Cars under the roof of Do¤ufl Otomotiv. Do¤ufl Otomotiv is getting prepared to accelerate in cooperation with Volkswagen.

Vedat Uygun Volkswagen Passenger Cars Brand General Manager

“2007 was a successful year for Volkswagen Passenger Cars; customer satisfaction improved in each and every step of the automotive value chain.”

The mission of Volkswagen Unconditional customer satisfaction and our transparent structure. While with superior service quality we provide services to the same Passenger Cars, which was Our most important target is to provide standard nationwide through our developed in parallel with and gradually build on the satisfaction extensive and educated authorized our own corporate vision of of our investors as well as our individual sales, we reach our customers through and institutional customers, increase 11 models competing in different “innovative service beyond customer satisfaction and enhance segments, seeking to rapidly meet expectations” is providing a the loyalty of our customers with various consumer expectations in superior service quality and a value parallel with increasing competition wide range of product variety chain strategy. As such we plan to and evolving market conditions. closely aligned with the increase the market share of needs of the passenger cars, Volkswagen Passenger Cars, working together with all of our authorized supporting the products with partners who play a role in the the most developed and provision of key services, such as product based marketing sales, after sales, finance, fleet rental and used car sales, etc. techniques, rendering profitability oriented sales Closer and more transparent with the 21st Century Showroom concept and after sales services, and VW Passenger Cars has offered its providing maximum vehicles and services through the “21st customer satisfaction, which Century Showroom” concept designed by Volkswagen AG since 1994. We are all inseparable parts of conduct sales and after sales services our mission. rapidly and professionally with qualified staff in modern facilities, reflecting our efforts to be close to our customers Do¤ufl Otomotiv Annual Report 2007 31

Consistently in the top three import Market share improves in 2007 brands In spite of the contraction in the total Aiming to provide the highest levels market in 2007 as well as the retreat of quality-price equilibrium with a wide in the import market share from 70% range of car models and after sales to 66%, VW Passenger Cars services to its customers through more successfully increased its market share than 50 authorized dealers, in retail sales from 7.4% in 2006 to VW Passenger Cars has always been 7.5% in 2007. Overall sales reached among the top three import brands 27,619 in 2006, a year marked by and is also regularly cited as the most innovations with new launches such popular and prestigious brand among as the EOS and Cross Polo models consumers. and the TSI engine, offering Volkswagen’s latest technology. Sales Market dynamics in 2007 ended 2007 at 26,110 vehicles, a The year 2007 was marked by a 29% contraction of 5% on the back of contraction in the market during the first market dynamics. half of the year when compared to the same period of 2006. However, the Model performances market bounced back remarkably in the • In spite of the vehicle supply second half of the year, supported by shortages in 2007, the Polo maintained greater price flexibility and active its position in its segment with a share communication campaigns, as well as of 5.8%, with sales of 4,827 units. The the stronger local currency. A total of series of “Tour” was launched in 2007 359,416 vehicles were sold for the full like the successful “Goal” series in year, underpinned by year-end 2006. This was achieved at a time of promotions and fleet sales in November cut throat competition, where and December. As a result of the manufacturers seek to gain a improvement in the second half of the competition edge through price and year, the overall market only contracted equipment. The new Polo, with the by 3% in 2007. tiptronic transmission option, offering drivers a choice of manual and automatic transmission in one car, enabled the company to move a step ahead of its competitors. 32 Do¤ufl Otomotiv Annual Report 2007

Volkswagen Passenger Cars

Retail Market Share • The Golf, the most prominent player "Exclusive" line, which includes highly Development over the Years (%) in the compact segment, achieved an sophisticated equipment, the Passat 11.5% market share in its segment strengthened its position in the market. with sales of 4,565 units in 2007. The Golf managed to increase its segment • The Passat Variant was the best 7.5 7.4 7.2 share, becoming the third best selling selling model, boosting its sales in the model in its segment in a year when estate car segment by approximately a slew of brand new models were 2.5 times over its 2006 levels, brought to the market by its underpinned by active pricing competitors. The company achieved strategies and intensive great success in its sales trend communication activities carried out especially in the last quarter of the during the year. As well as offering year, when it succeeded in segment luxury and comfort, the Passat Variant, leadership. Effective communication boasts plentiful luggage space and a in the media, emphasizing its luggage managing system, winning competitive prices and wide range of acclaim among consumers as both a

2005 2006 2007 engines, played an important role in family car and a workhorse for achieving this success. The "Tour" line, businesses. launched during the year, and VW's new TSI engine technology also We aim to increase the share of Variant supported the growth in sales of the sales to 15% in all Passat sales, taking Wholesales over the Years (Unit) Golf model. a leading place within the Variant segment in the coming period. • The Jetta, our model for the mid- sized saloon segment – covering 30% • EOS was the leader in the A segment of the total market, is the largest section coupé-cabrio segment, outselling its 32,049 of the market in Turkey - maintained competitors every month and selling

27,619 its market share in the segment. As 130 vehicles during the year. 26,110 the best selling VW model, Jetta kept a share of 7.5%, further strengthening • The New Touareg, our luxurious its position in the segment, which is 4x4 model, was introduced in early dominated by the domestically 2007 after a facelift. Sales of the vehicle produced models and in which many reached 310 units, taking its market new models were simultaneously share in the segment to over 8% and launched in 2007. Despite fierce ranking the model 5th in its segment, competition created by a plethora of up two notches from its 7th position in new model launches, including the 2006 in the luxurious SUV segment.

2005 2006 2007 domestically produced models in the The “On Road Off Road Touareg” mid- sized saloon segment, the Jetta activities held during the year played maintained its position in fleet market an important role in this success. to become the most important model in our fleet sales.

• The Passat, one of the best-selling and most popular models in the upper mid-size segment, retained its leading position in 2007, commanding a 27% market share in its segment with 7,094 vehicles sold. Enhanced by its new 170 hp diesel engine and new Do¤ufl Otomotiv Annual Report 2007 33

• The Golf GTI, one of our niche The VW Touran: Turkey’s first self- models, successfully attained its parking car VW Passenger Cars targeted sales figure; in addition, The new Touran, which underwent a seeks to introduce Touran in the MPV class, where multi facelift in the last quarter of the year, functional vehicles compete, were attracted a great deal of attention in a new models to meet positioned as the most popular short space of time with its outstanding Volkswagen models by consumers. features such as ESP, Hill Hold, Park drivers’ expectations The facelifted Touran, launched in Assistant and its TSI engine, attaining in a wide and 2007, attracted a great deal of interest high sales figures from the moment of from consumers due to features offered its launch. Tour packages proved diversified product line, such as the “Park Assistant” which highly popular among its customers, have been introduced to the Turkish meeting demands for feature packed presenting a wide market for the first time, generally equipment and good value offers. supporting sales as well. Moreover, Exclusive packages were added to range of engine and the new Touran, with its TSI Engine, the model range with very attractive equipment. ESP and seating capacity, which can options for high-grade comfort and be adjusted to 7, has achieved pride safety conscious Passat customers. of place in the MPV segment.

Launches and innovations in 2007 Seeking to introduce new models to meet drivers’ expectations in a wide and diversified product line, presenting a wide range of engine and equipment, VW Passenger Cars concluded a hectic year, packed with product launches and model-based marketing activities.

The facelifts in the New Touareg, Touran models and the introduction of Passat Variant, as well as the new equipment packages such as the “Tour” and “Exclusive” were the most important launches in 2007. The new Touareg, launched in February, enjoyed success, increased its segment share and subsequently moved up two steps in its segment. 34 Do¤ufl Otomotiv Annual Report 2007

Volkswagen Passenger Cars

Our marketing activities; “creating a Totems were conceptualized and Volkswagen new segment” designed according to each model's Passenger Cars’ first One of our most prominent marketing unique features, and were positioned activities in 2007 was the next to the vehicles in our showrooms priority in after sales communication activities carried out and have attracted great interest from for the Passat Variant model. The our customers. Product cards with a is to provide superior Passat Variant shares the unparalleled wealth of visual features to be placed service quality and to product features with the Passat, the in cars were designed as part of our segment leader. An intensive and aim to more easily promote the be the number one in aggressive communication plan was distinguishing and outstanding implemented to break ground in the features of our models to our terms of customer market. Apart from the promotion customers and attract their interest in activities for the Passat Variant model, the right manner, and very successful satisfaction. a series of promotional activities were results were obtained. carried out for the new Touareg and the new Touran models, including "test Rising value: Volkswagen Passenger drive" activities for the press, in order after sales service to strongly promote our new models. Backed by the corporate philosophy Our EOS model won “the most admired of providing innovative service which automobile of its class” award in the goes beyond customer expectations, "Otobil" contest, which Hürriyet we served an average of 1,100 newspaper’s Oto Yaflam insert customers per day in an indoor service arranged in the Coupe Cabrio class. area of 167,000 m2 with our 2,800 service employees, achieving highly Customer friendly showrooms successful results for the Volkswagen Our authorized dealers’ showrooms Passenger Cars after sales service. represent the face of our brand. A About 320,000 customers received series of measures were carried out service from the company’s authorized in our showrooms to upgrade them to service providers. With this result total become more customer-oriented. service entries increased by 3.5%. Again, in the same period, spare parts turnover and labor turnover of our services increased by 21% and 22% respectively, compared to 2006. Do¤ufl Otomotiv Annual Report 2007 35

Do¤ufl Otomotiv’s first priority in after A brighter future once again Do¤ufl Otomotiv’s primary targets are sales is to provide superior service The schemed launches to put across to increase its market share in 2008, quality and to be the number one in in 2008 are New Golf, Tiguan, Passat to execute new model launches and terms of customer satisfaction. CC and Scirocco models. While our communication strategies successfully, Golf model has attracted the as well as raise customer satisfaction Important progress was achieved in admiration of our customers with its indices in sales and after sales respect to customer satisfaction as a new body; the Tiguan in the compact categories. result of steps taken towards this SUV class, the Passat CC in the upper priority; VW AG selected Turkey as a mid-size saloon class, and the Volkswagen Passenger Cars is pilot country in a global project in this Scirocco in the compact class will be determined to increase its performance field. Turkey has been the first and the the new models to be introduced. by adding new successes in 2008. only country to meet its targets before the end of the 2nd year, which was In parallel with its strategic goals within defined in the 3-year target plan, in the framework of its main mission, order to imply quality in service shaped by Mr. Hildebrandt VW AG After Sales Chairman.

The independent “Turkey Customer Satisfaction Index” study which determines leader companies in every sector, jointly carried out by Turkish Quality Association (KALDER) and KA Research Company on 18,000 people randomly chosen in 81 cities proved the great success of Volkswagen Passenger Cars in the areas of customer satisfaction, loyalty, expectations, perceived quality and values, etc and VW Passenger Cars were awarded with top awards in 2007, as in 2006. It has also been chosen as the brand which provides “Best Customer Satisfaction” for the last 2 years in a row.

Such evaluation made by the independent institute KALDER, which conducts research on customer satisfaction once more proved the determination of Volkswagen Passenger Cars in respect to customer satisfaction. 36 Do¤ufl Otomotiv Annual Report 2007 11.9% Volkswagen Commercial Vehicles ranks as the third brand in the market. 386 Do¤ufl Otomotiv Annual Report 2007

Volkswagen Commercial Vehicle models were the first to offer innovation, creativity, quality, high technology equipment and safety in their market segments.

Kerem Galip Güven Volkswagen Commercial Vehicles Brand General Manager

“Volkswagen Commercial Vehicles renewed its entire product range with Crafter Volt and reinforced its third position in the market, also consolidating leadership position in sales of imported vehicles.”

Volkswagen Commercial Volkswagen Commercial Vehicles has In 2007... been a part of the Do¤ufl Otomotiv The market for commercial vehicles in Vehicles, which ranked third family since 1994. There are over 500 Turkey shrunk by 6.1% in 2007, with in the total commercial versions of the Caddy, Transporter, 232,971 vehicles sold compared to vehicle market for the last Caravelle and Crafter Volt models 248,159 vehicles in 2006. under the Volkswagen Commercial four years, also became a Vehicles brand umbrella. Volkswagen Commercial Vehicles leader in import commercial commanded a market share of vehicle sales in 2007. Volkswagen Commercial Vehicles 11.9 % in 2007, slightly down on the models were the first in their segments 12.9 % in 2006. Nevertheless, Turkey has been the to present the concepts of innovation, Volkswagen Commercial Vehicles leading export market for creativity, quality, high technology and maintained its third position in the European Volkswagen safety to the market. Volkswagen market. Commercial Vehicle models are Commercial Vehicles for equipped with ESP, ABS, ASR, EBC, two consecutive years and EDL, airbags and air conditioning, despite the fluctuation in setting the standards in their class. the market in 2007, Apart from boasting many firsts in it preserved its position as technology, comfort and safety in the leading country. Turkey's light commercial vehicle market, Volkswagen Commercial Vehicles will retain its market position as a brand meeting all the demands and expectations of the sector and its customers. Do¤ufl Otomotiv Annual Report 2007 39

Performance of our models Volkswagen Commercial Vehicles • Volkswagen Commercial Vehicles launched the new Crafter Volt model maintains its strong position in the “A” in March 2007. The Crafter Volt was segment of small commercial vehicles introduced to the market with a with the Caddy, which accounts for comprehensive product range 48% of Volkswagen Commercial including various engines, load Vehicles sales. The Caddy's market capacities and seating options, share edged down slightly from 12.8% meeting customers' varying needs in 2006 to 12.0% in 2007. from different sectors. Volkswagen Commercial Vehicles developed • Volkswagen Commercial Vehicles special body and equipment options, put in an exemplary performance in as well as various products for the new the B segment, composed of mid- Crafter Volt, designed especially for sized commercial vehicles, raising its the Turkish market, while offering market share from 24.7% to 27.3%. customers an opportunity to customize An optimal price/benefit ratio and their vehicles according to their own equipment not standard on competing needs. During the development of the models (ESP, 174PS, automatic Crafter Volt, body sections were crash gearbox, 4motion, etc.) played a key tested to bring the vehicle in line with role in this success. European safety standards.

• In the C-D segment, composed of Brand communications: An important large commercial vehicles, the Crafter tool on the road to success Volt commanded a 7.4% market share The ongoing mass communication in 2006. Although the new generation undertaken during brand Crafter Volt was only launched in communications studies constitutes a March, and faced fierce competition, vital part in Volkswagen's Commercial it still managed to capture a 5.6% Vehicles marketing strategy. share of the market in this segment in 2007. Crafter Volt's monthly market Volkswagen Commercial Vehicles was share reached 8% again in the last selected as the most preferred light months of the year. commercial vehicle brand during the purchasing process, according to the Brand Image Survey carried out by Volkswagen AG in Turkey.

With Volkswagen Commercial Vehicles' sectoral communications synchronized with its tactical product communications, the company effectively reached its target audience through local channels and outdoor as well as national media for its comprehensive corporate and product identity messaging. 40 Do¤ufl Otomotiv Annual Report 2007

Volkswagen Commercial Vehicles

Volkswagen Commercial Event marketing activities • During the month of Ramadan, Vehicles Market Share (%) Event marketing activities included Volkswagen Commercial Vehicles road shows and national and sector organized dinners in 8 different cities. fairs, which were the most important These Volkswagen Ramadan Talks

12.9 projects for Volkswagen Commercial were held at authorized dealers with 11.9 11.4 Vehicles in its face to face directly targeted customers. Among communication strategy. those in attendance were Deniz Gökçe, Tayfun Talipo¤lu and ‹lber Ortayl›. In this respect, Volkswagen Commercial Vehicles was • Areas in Anatolia currently lacking able to reach 1,800 people through authorized dealers were targeted and these activities. local Volkswagen Commercial Vehicles marketing was carried out through Volkswagen Commercial Vehicles also specially designed and manufactured gives utmost importance to press Transporter and Crafter Volt pickups. relations. In February 2007, two The project took place in seven regions separate launch events were 2005 2006 2007 and at 144 points, with the campaign organized for the automotive press involving directly communications with and the national press for the new over 10,000 people on a face to face Crafter Volt model. A press conference basis. for the evaluation of the 2006 results Volkswagen Commercial was also held in early January. Vehicles Sales (Unit) • In 2007, Volkswagen Commercial Volkswagen Commercial Vehicles was Vehicles took part in 7 fairs and among the top three brands among contacted 4,200 prospective Light Commercial Vehicles in terms of customers. As well as national fairs, news activity, and will continue its 33,163 31,947 sector specific fairs (textiles, food, regular communication activities with tourism and automotive) - which offer the press. As well as press

27,669 an appropriate medium for direct and conferences in 2007, regular press experiential marketing - continued to releases were circulated to maintain be one of the important communications information flow. channels for the Volkswagen Commercial Vehicles brand. Volkswagen Commercial Vehicles obtained the highest satisfaction • Sponsorship activities were ratings in terms of marketing activities undertaken in an effort to strengthen among all Do¤ufl Group brands, direct communication with key sectors. according to the Authorized Dealer

2005 2006 2007 Among these, co-operation with Satisfaction survey conducted by various sector organizations, especially Do¤ufl Otomotiv on all its dealers. TURSAB, (the Association of Turkish Travel Agencies) represented the most important sponsorship areas. During the TURSAB sponsorship activities, we met 2,019 tourism sector representatives in 7 cities, and met more than 5,000 small and mid-sized company owners and representatives face to face through other sponsorship activities. Do¤ufl Otomotiv Annual Report 2007 41

Marketing Force Project For more effective communication There are sales and marketing reports The sales and marketing strategy, with our dealers on the Volkswagen Commercial named the “The Marketing Force” Volkswagen Commercial Vehicles Vehicles site, with announcements and project, was created and developed launched an intranet site team communication data. The site by Volkswagen Commercial Vehicles. (http://vwticariarac.vw.com.tr) that can also includes news and forum sections The strategy included the introduction only be used by its authorized dealers. with exchange rate information, daily of the Transporter to prospective With this site, Volkswagen Commercial news items, a search motor and other customers on a one on one basis; up Vehicles aims to improve useful sources of information such as to date customer contact information communication and enhance the weather forecast. was collected, and other cooperation with its dealers. complementary products (e.g. An important factor in our success: financing, insurance) of Do¤ufl Volkswagen Commercial Vehicles Educational Training Programs Otomotiv Group were cross sold, thus Intranet aims to; Volkswagen Commercial Vehicles completing the automotive value chain. • Engender improvements in believes that education is important in effectiveness, productivity and achieving sustainable success. In The Marketing Force team reached a economy, 2007, the division administered 1,400 size of 32,000 people in 2007, with a • Build a fast and secure employee-days of training and 6 total of 1,750 Volkswagen Transporter communications channel between module product training sessions models sold. Volkswagen Commercial Vehicles and within the sales department. authorized sales dealers, • Provide the means for meaningful 44 Volkswagen Sales Representatives, and effective cooperation within the who received 256 hours of training in organization as well as to build an modular sessions, earned the “VW effective communications platform International Sales Certificate” in 2007. providing the opportunity for mutual As the first importer executing information sharing. Volkswagen International Sales Training in the world, Do¤ufl Otomotiv also assumed the title of the first importer with all members the sales team to obtain the certificate. 42 Do¤ufl Otomotiv Annual Report 2007

Volkswagen Commercial Vehicles

Our goals for 2008 will drive us Thus, Volkswagen Commercial Volkswagen forward Vehicles will increase its concentration Commercial Vehicles In 2008, total unit sales of light on sales in the panel van market, which commercial vehicles in Turkey are accounts for about 15% of the A plans to offer its expected to reach 235,000 units, and segment. The company will also place Volkswagen Commercial Vehicles aims greater emphasis on special products customers a to maintain a market share of 12%. and pricing to the cargo companies completely refreshed and other fleets, which play an In 2008, Volkswagen Commercial important role in this segment. model range in 2008 Vehicles determined special strategies for each segment and based on its The Transporter is one of the strongest while also continuing competitive strength on the launch of players in the B segment with its high to build on its strong new vehicles in the light commercial market share and in 2008 its "best vehicle market. For the A segment vehicle" image among customers will place in the market. Caddy, a vehicle which has proved be maintained by emphasizing popular with customers, a strategy will competitive advantages such as high be employed which aims to expand product quality, standard safety the target customer base and solidify equipment, low fuel consumption and its position in the market. The Caddy a high price/benefit ratio. In the second Life was very well received in Europe half of 2008, new equipment packages in the first half of 2008 and has shall be introduced in kombi models, attracted attention with its visual with modifications to the vehicle. qualities and also its long wheelbase version, the Caddy Maxi (the The Caravalle, which set its own class production volume of which was in the market, will continue to appeal increased by 1m3) will be launched to to those customers seeking high the market. The Caddy shall be sold structured VIP solutions. Offering alongside the Maxi model, filling the options such as the 174 PS engine, gap between itself and the Transporter 4motion, tiptronic gearbox, it will segment in terms of load capacity, maintain its strategy of differentiating and will be a main player in this itself from its rivals. intermediate segment. Do¤ufl Otomotiv Annual Report 2007 43

The "mass customization" strategy shall be maintained in the Crafter model to meet the needs of different sectors and to differentiate the product from its rivals with appropriate equipment and accessory options. In addition to current body solutions, new products and accessories shall be developed according to the evolving customer demands in the market.

New model range will spur our development Volkswagen Commercial Vehicles plans to offer its customers a completely refreshed model range in 2008; it will also continue to build on its strong place in the market with feature-packed options and equipment alternatives, which its competitors lack. 44 Do¤ufl Otomotiv Annual Report 2007 5,898 Audi's wholesales figure increased at 19% in 2007. 46 Do¤ufl Otomotiv Annual Report 2007

The Audi brand reached its top retail and wholesale figures ever in Turkey in 2007 and recorded its best quality rating values.

Giovanni Gino Bottaro Audi, Bentley, Lamborghini Brand General Manager

“Speaking for the whole Do¤ufl Otomotiv team and Audi Dealers, we were proud of the progress we achieved towards our targets in 2007 and breaking performance records in all ratable performance criteria. I sincerely hope we can also continue on this path together in 2008 …”

One of the most prestigious A year of new records Growth in the premium segment The import of Audi vehicles into Turkey in 2007 brands in the world, Audi is started in 1994, carried out by Do¤ufl The premium vehicle segment grew represented by the four Otomotiv. The Audi brand broke on the back of the two-term sectoral interlinked rings of its founder records in 2007, reaching its best retail conjuncture in 2007. Even though the and wholesale figures ever, Audi also market share of imported motor companies: Horch, Audi, boasted some of the best quality vehicles declined amid economic DKW and Wanderer. ratings. Audi has put together the turbulence, sales in the premium Established in 1889, Horch largest sales organization and segment increased. The total number achieved the highest market share in of sales in the premium segment is one of Germany's oldest the year and put in an excellent increased from 17,096 units in 2006 car manufacturers. The performance, while preserving the to 21,233 units in 2007. In parallel with company, lending its name lowest rates of employee turnover. this trend, the market share of the premium segment also increased from to Audi of today, was 4.5% to 6%. restructured by August Horch, who left his own firm in 1909. Audi is a leading company with its rich history, unsurpassed achievements in motor sports and progressive technology. Do¤ufl Otomotiv Annual Report 2007 47

Audi posted 19% growth in New products have played a role in wholesales Audi's improving performance Audi's wholesales in Turkey increased The TT Roadster, the A5 Coupe, and by 19% from 4,956 units in 2006 to the improved A8 were added to Audi's 5,898 in 2007. The marketing of the product range in 2007, contributing to brand and models in conjunction with Audi's improving strength in the Audi Dealers, as well as customer premium segment. oriented sales and after sales activities, proved key factors in the success of Top of the lists of most preferred Audi, which stands out from its brands competitors with its state-of-the-art Audi has always enjoyed a successful technology, innovative and sporty sales performance both in Turkey and design. throughout the world, and this trend continues to this day. Performance of our models The Audi A4 model sold 1,878 units, By striving to achieve maximum levels with an increase of 66.4% when of customer satisfaction under the compared to the previous year. The umbrella of Do¤ufl Otomotiv, Audi has Audi A6 model sold 1,165 models, built on its success each year in sales, representing 24% growth over the marketing and after sales. Audi previous year. reaches Turkish customers through its 16 Audi Dealers, one niche showroom A total of 512 Audi Q7 vehicles were and 29 authorized service centers also sold through wholesale in 2007, marking provides premium services through its 53% growth over 2006, when the vehicle after sales centers. The high level of was introduced to the market, and quality provided through these centers chalking up a successful year for Audi's can be seen in the 11.3% rate of foray into the SUV segment. repetition and the customer satisfaction index, regarding service operations, After a makeover in 2007, wholesales of 82. These results have ensured of the TT model quadrupled from 36 in Audi's place as one of the most 2006 to 144 in 2007. popular brands in the premium segment in Turkey during the last 13 Furthermore, 2,115 A3 vehicles and 57 years. A8 vehicles were sold in 2007. 48 Do¤ufl Otomotiv Annual Report 2007

Audi

Our marketing and launch activities The Audi A5 - Audi's coupe, Audi has always The “Audi Driving Experience” was redesigned after 11 years - was enjoyed a successful held at Hezarfen Airport in May. Audi's introduced in Turkey with test drives existing customers and owners of organized at the Kemer Golf & Country sales performance competitor brands were invited to take Club on November 10-11. Audi Dealers part in this driving activity, where undertook a number of presentations both in Turkey and German drivers trained participants and test drive events in Turkey for the throughout the world, on driving techniques. Audi A5. and this trend The Audi R8, A5/S5, A4 and A3 Cabrio models, launched abroad in 2007, continues to this day. were introduced to Turkey through the press. Journalists were also taken to the Audi Sports Car Experience -the test activity for sports models - in Barcelona in August.

One-to-one marketing activities were undertaken to increase brand loyalty among existing customers, through the regularly updated web site, online specials of new models, monthly e- bulletins, e-mailings, the quarterly Audi Magazine and direct mailing with 'welcome' packages sent on special occasions.

Audi Retail Sales and Market Share Audi Wholesales

Premium Market Retail Sales (Unit) over the Years (Unit) Audi Retail Sales (Unit) Audi Premium Segment Market Share (%) 21,233 5,898 4,956 17,096 4,705 16,032 6,118 4,928 4,689 29% 29% 29%

2005 2006 2007 2005 2006 2007 Do¤ufl Otomotiv Annual Report 2007 49

Product range to expand in 2008 Audi's product range will expand in 2008.

A slew of new launches are planned in 2008, including the A4 (B8), A3 Cabrio, RS6 Avant, Q5, and TTS models, while product alternatives with new engine options will be offered to the Turkish drivers.

Audi's brand target for 2008 is to strengthen its premium brand positioning with sales and after sales organization and marketing activities.

Audi aims to sell more than 6,500 cars in 2008 and to reinforce the leadership of its brand as well as improve customer satisfaction. 50 Do¤ufl Otomotiv Annual Report 2007 218 Porsche achieved sales of 218 vehicles in 2007. 52 Do¤ufl Otomotiv Annual Report 2007

Porsche sold 220 cars in 2006 and carried on again this sales rank in 2007 by selling 218 cars.

An›l Gürsoy Porsche, SEAT Brand General Manager

“Turkey's 1,000th Porsche is now on the road! Porsche, which is within Do¤ufl Group since 1996 as a trade mark, sold its 1,000th car in Turkish market place in 2007. The same year, Porsche maintained its stable disposal graph and also continued to heighten its car park.”

The sales performance was The overall passenger car market contracted by 3.21% year-on-year in in a state of limbo in the first 2007. However, the premium models half of 2007 amid economic with diesel engines or low output and political uncertainty bucked this trend, with the premium created by the anxiety segment market share increasing to 5.85% in 2007. surrounding the two separate elections in Turkey. However, Porsche protected its market share in the conclusion of the 2007, even though Porsche does not produce cars which lack the soul and elections without any major philosophy of the sports car. upset set the stage for an improvement in sales Sales of Premium Gasoline SUV Models (Unit)

performance in the second Cayenne Range Rover half of 2007. Mercedes-Benz (ML+G+GL) Volkswagen Touareg BMW X5 Audi Q7 126 22 18 15 12 5 Do¤ufl Otomotiv Annual Report 2007 53

Performance of our models The Cayman was positioned to fill the After selling 103 Cayenne models in gap between the Porsche Boxster and 2006, we managed to increase our the 911 both in terms of targeted sales by 22.3% to 126 in 2007. This customer profiles and price. As a growth largely comes on the back of result, sales of the Cayman model the facelift to the Cayenne model in jumped to 24 in 2007. 2007. Of the 218 Porsches sold in 2007, 55 As in 2006, the new Cayenne remained were Carrera models, with the Carrera the highest selling gasoline premium 4S Coupe being the most popular SUV model in 2007. At the end of the variant with 15 models sold. A total of fourth quarter, 126 of the total 204 12 Carrera 911 Turbo models were models sold within the premium sold in 2007, the highest level of sales gasoline SUV segment were Cayenne since 1996. models. Although sales of the new Cayenne started 3 months later Porsche will expand its product range because Porsche AG gave permission in 2008 with the addition of the to sell the new Cayenne models from 911 GT2 and Cayenne GTS models. March 2007, some 23 additional Cayenne models were sold when compared to last year.

A total of 13 Boxster models were sold in 2007, 2 fewer than in the previous year.

Sales Breakdown by Model over the Years (Unit)

Boxter Cayman 911 Carrera Cayenne 126 118 102 72 55 31 26 24 15 13 6 3

2005 2006 2007 54 Do¤ufl Otomotiv Annual Report 2007

Porsche

Two launches in 2007 Porsche Mobil 1 Supercup race was Porsche Cayenne Porsche successfully launched the organized before Formula 1 Turkish sales increased by new Cayenne and 911 Turbo Cabrio Grand Prix, marking a first in Turkey. in 2007. Direct contacts were 22.3% and reached established with prospective Do¤ufl Otomotiv-Porsche, aiming to 126 in 2007. customers during the launch activities. maintain the support Porsche AG has provided the world of tennis globally Marketing activities continue at since 1978, assumed sponsorship of a full pace the 15th Traditional Cercle D'Orient Porsche Turkey website presents all Tennis Tournament which traditionally relevant information on Porsche takes place between 26 August and models with seasonal micro web sites 9 September. offering a wealth of facts and figures on the Porsche brand to its enthusiasts. An expanding service network With its new authorized dealer Porsche reaches out to its customers openings in 2006, Porsche now boasts and informs them of news and activities a service network composed of five through the Carrera newsletter and authorized dealers and six authorized Christophorous Magazine distribution service points. bimonthly. As well as maintaining its current In 2007, Porsche attended Izmir and dealership and aftersales services Antalya Auto Shows, in which 911 network, Porsche is on the verge of a Turbo Cabrio formally launched at new milestone with the forthcoming Antalya fair. Porsche area drew huge launch of a new sales and aftersales attention by Porsche customers and services center in Lausanne- enthusiasts as well as Turkish Switzerland in the second half of 2008. celebrities.

Market Share over Porsche Sales over the Years (%) the Years (Unit) 220 0.061 218 0.059 153 0.040 2005 2006 2007 2005 2006 2007 Do¤ufl Otomotiv Annual Report 2007 55

Porsche's advances attract press attention The marketing and launch activities conducted by Porsche throughout the year attracted copious press attention, enabling the brand to effectively reach its target audience.

The attendance of celebrities to its press events ensured wide press coverage, contributing positively to the brand's image and awareness.

Sales of 220 units targeted for 2008 Porsche aims to sell 220 cars in 2008. Expectations of further growth in the luxury segment will continue support Porsche's sales goals. 56 Do¤ufl Otomotiv Annual Report 2007 19-3 A total of 19 Bentleys and 3 Lamborghinis were sold and delivered in 2007. 58 Do¤ufl Otomotiv Annual Report 2007

The most important factor in the achievement of the objectives of the Bentley and Lamborghini brands in 2007 was the synergy and experience offered by Do¤ufl Otomotiv.

Giovanni Gino Bottaro Audi, Bentley, Lamborghini Brand General Manager

“The year 2007 was the entry year for the Turkish Automotive sector in both brands; in this context, the brand development and brand structuring was completed successfully.”

A successful entry into the According to these agreements, The most prestigious and luxurious Bentley and Lamborghini brands’ retail, models in motoring history sector spare parts and service operations Bentley Motors was founded in 1919 Do¤ufl Otomotiv actively are undertaken by Do¤ufl Otomotiv by a train engineer, Walter Owen started to manage the sales Servis ve Tic. A.fi. Bentley and has developed further with Volkswagen AG. The British Brand and service operations of the A differentiated marketing approach is best known for producing its Bentley Brand in Turkey on in the same location prestigious and luxurious models since 2 November 2006, following Bentley and Lamborghini brands’ sales, 1919. The racing character of the planning, marketing and after sales brand later became one of the most a joint signing of a letter of services operations are controlled under important brand values, while Bentley intent. Under the agreement one general manager and the same won many important races in Le Mans. signed three weeks later, team. Both brands are planned to be displayed in the same location but in Automobili Lamborghini was established Automobili Lamborghini separate showrooms. by Ferrucio Lamborghini in 1963. S.p.A. issued the operating Production started in city of Bologna rights for the sales and The Bentley Showroom was officially in Italy, where it continues to this day. opened in Ortaköy in Istanbul in May service operations of 2007. The construction of the Lamborghini branded Lamborghini showroom is still in vehicles in Turkey to Do¤ufl progress. Otomotiv. Do¤ufl Otomotiv Annual Report 2007 59

In its 20th year, the company was sold A strong performance in our first year to two Swiss investors, and later In line with their targets, the Bentley changing hands a number of times; and Lamborghini brands - recently it was sold to the French Mimran joining the Do¤ufl Otomotiv umbrella brothers in 1980, to Chrysler in 1987, - enjoyed a strong performance in to the Indonesian Magatech, affiliated 2007. to the Sedtco Group, in 1994 to V'Power and the Malaysian investment A total of 19 Bentleys, including 4 GTs, firm, Mycom. 3 GTCs, and 12 Flying Spur models, and three Lamborghini vehicles, On 24 July 1998, Audi AG became including one Gallardo Spyder, one Lamborghini's sole owner, bringing an Gallardo Superleggera and one end to its financial uncertainty. After Murcielago LP 640 were sold and joining Audi AG, Lamborghini achieved delivered in 2007. a rapid upturn with its strong and technologically developed models. The long production period and long order lists for both models limits the availability of these models.

2007 Higher-end Luxury 2007 Higher-end Luxury Segment Market Share (%) Segment Sales (Unit) Mercedes Mercedes Porsche Porsche Ferrari Ferrari Maserati Maserati Bentley Bentley BMW BMW Lamborghini Lamborghini 40.6 93 23.6 53 12.7 29 12.2 28 19 8.3 3 3 1.4 1.3 60 Do¤ufl Otomotiv Annual Report 2007

Bentley - Lamborghini

Growth in the ultra luxury segment Significant importance of the first year In line with their in 2007 As an entry year to the Turkish targets, the Bentley Despite the shrinkage in the total automotive sector, the year 2007 was passenger market, premium market of significant importance for the Bentley and Lamborghini sales have increased by 10% over brand. their 2006 level. brands-recently • Bentley's target market was reached joining the Do¤ufl While the fluctuations in the economy through the press, mainly through PR directly affect imported vehicle sales, efforts. International press visits were Otomotiv umbrella- hitting market share, sales in the high- conducted during this time; interviews end luxury segment increased from with Bentley's upper management enjoyed a strong 208 units in 2006 to 229 units in 2007 were organized with all activities by end of December, bringing the supported by newsletters. The Bentley performance in 2007. share of the higher-end luxury segment brand was launched in a prestigious up to 0.06%. ceremony at the Esma Sultan Palace in May. The brand's press launch took Bentley accounted for 8.3% of the place later at Les Ottomans Hotel, Turkish higher-end luxury segment, attracting a high level of press attention. with sales of 19 cars, while Lamborghini sold 3 cars, a share of 1.3% of this segment. Do¤ufl Otomotiv Annual Report 2007 61

2007 Sales (Unit)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Bentley Continental GT 1 2 1 4 Continental GTC 1 1 1 3 Continental Flying Spur 1 4121 312 19

Lamborghini Gallardo Gallardo Spyder 1 1 Gallardo Superleggera 1 1 Murcielago LP 640 1 1 Murcielago LP 640 Roadster 3 62 Do¤ufl Otomotiv Annual Report 2007

Bentley - Lamborghini

• The high success trend can be seen In 2007, the share of in the feedback reports of the brand the higher-end luxury launch, which was acclaimed for its elegance and style. segment in the • Despite being the first year, the 2007 automotive sector is press reports prove that Bentley and registered as 0.06%. Lamborghini successfully set themselves apart from their competitors.

• For brands at a developmental stage, sales points were built carefully according to the brand CI format, and appreciated by foreign offices.

• Internet portals for the brands were also developed during this stage. In the CRM sense, potential customer databases were created and sales supportive messaging carried out through these databases. Do¤ufl Otomotiv Annual Report 2007 63

• In the last quarter of 2007, Bentley successfully realized its first showroom activity in Ortaköy Showroom together with its global partner, Breitling.

Showroom organizations will continue in 2008. Apart from target customer activities, Bentley will continue brand based marketing activities for brand loyalty in 2008.

The launch for Lamborghini brand in Turkey is planned for May 2008.

The sales targets for 2008 are for 25 Bentley models and 8 Lamborghini models.

Sales Targets for 2008 (Unit)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Bentley Continental GT 1 1 1 1 4 Continental GT Speed 1 1 2 Continental GTC 1 1 2 Continental Flying Spur 1211111122316 Arnage R - Arnage RL 1 1 Arnage T - Azure - Brooklands - 25 Lamborghini Gallardo 11 114 Gallardo Spyder 1 1 Gallardo Superleggera 1 1 2 Murcielago LP 640 1 1 Murcielago LP 640 Roadster - 8 64 Do¤ufl Otomotiv Annual Report 2007 3,426 3,426 wholesales realized in 2007. 66 Do¤ufl Otomotiv Annual Report 2007

SEAT ranked 20th in the automotive passenger car market in 2007 with a total of 3,426 vehicles sold through wholesale and a market share of 0.95%.

An›l Gürsoy Porsche, SEAT Brand General Manager

“The SEAT brand continues to attract acclaim from car lovers with the sporty and dynamic product lines in its models.”

SEAT brand became a real SEAT conducts its operations in accordance with Do¤ufl Otomotiv's brand under the umbrella of vision and offers its models including Do¤ufl Otomotiv Ibiza, Cordoba, Leon, Altea, Altea XL In December 1997, and Toledo to the Turkish market Katalonya Oto was through 32 authorized sales dealers and 41 service points. established as a partnership between Do¤ufl Holding and Total of 3,426 cars sold Yüce Auto. At the end of The passenger car wholesale market sustained a contraction of 3% 2006, Katalonya Oto's entire compared to the previous year amid stake was acquired by uncertainty related to the general Do¤ufl Otomotiv and election and presidential election Turkey in 2007. SEAT's total sales by Katalonya Oto became a wholesale decreased by 29% in 2007 brand under the umbrella of when compared to 2006. Do¤ufl Otomotiv Servis ve SEAT was ranked 20th in the Ticaret A.fi. effective from automotive passenger car market in September 25, 2007. 2007 with a total of 3,426 cars sold through wholesale, and a market share of 0.95%. Do¤ufl Otomotiv Annual Report 2007 67

Performance of our models Headlines from marketing activities In 2007, the bestselling SEAT model SEAT conducted image-oriented was the Leon. marketing activities in 2007 in a bid to raise brand awareness and establish • The Leon accounted for 47% of SEAT a permanent emotional bond between sales in 2007, up from 33% of sales in the brand and the consumer, as well 2006, as a result of effective as to realize sales targets. communication campaigns. An advertising campaign focusing on • The Cordoba model accounted for the level of extras offered in the Leon 36% of SEAT sales in 2006 and 41% was carried out in July-August 2007, of SEAT sales in 2007 to become the with emphasis on the competitiveness second best selling SEAT model. of the model's specification. A newspaper advertising campaign was • The Ibiza's share in total SEAT sales carried out in September 2007 which used to be 23 % in 2006, informing the promotional market entry decreased to 12 % in 2007. price of Leon.

The Cupra, the highest spec and sportiest version of the Leon, was launched to the market in October 2007, mainly through promotional campaigns in magazines and internet sites. The campaign was an adaptation of SEAT's global launch campaign.

Model Breakdown of SEAT Sales over the Years (%) Ibiza Cordoba Leon Altea Toledo 47 44 41 36 33 23 20 14 15 12 7 5 3 0 0

2005 2006 2007 68 Do¤ufl Otomotiv Annual Report 2007

SEAT

SEAT Market Share In November 2007, an advertising A workshop meeting was held by the over the Years (%) campaign carried out for after sales beginning of July for all SEAT dealers activities included the Segment II & and service points. Plans for the Segment III campaigns for SEAT second half of the year were outlined

1.48 owners with models of older than 4 in this meeting, and suggestions were years. This campaign was announced taken and evaluated from dealers on 1.23 through national newspaper and radio current procedures and systems for channels. Again, in November, a Leon general improvement. 0.95 TV commercial campaign was carried out on national TV stations. This Global sponsorships campaign aimed to increase sales SEAT S.A. carried out two global volumes, as well as strengthening the sponsorships in 2007, one of which image of the Leon. This was also an was the sponsorship of Shakira's adaptation of the global SEAT S.A. European tour. Since this sponsorship campaigns. Finally, in December 2007, did not include a concert in Turkey, it

2005 2006 2007 a newspaper advertising campaign was announced in Turkey through a announcing entry prices was press excursion and regular press conducted alongside the TV bulletins. commercial broadcast in November. The second event was the contract SEAT Wholesales over All local dealer activities were between SEAT S.A. and Red Bull over the Years (Unit) coordinated and financed in parallel a 3 year period. Under the agreement, with national campaigns and SEAT was one of the main sponsors communication activities carried out of the Red Bull Air Race organizations throughout the year through the in all countries where the organization 6,570 coordination and contribution of Do¤ufl was held. The Istanbul leg of this Otomotiv. organization, in which SEAT provided

4,572 support especially with transportation, In specific periods during the year, took place on June 2, 2007. Do¤ufl 3,426 the magazines (Hillsiders, Trabzonspor Otomotiv and SEAT were included in and GS) and internet sites all advertisements throughout Turkey (www.imedya.com, and also staged car displays and www.timshowcenter.com.tr, etc.) were brand awareness activities around the used within the framework of Do¤ufl Golden Horn, where the event took Otomotiv's corporate sponsorships. place.

2005 2006 2007 Leon FR and Leon Cupra test drive models were lent to members of the Turkish press in 2007, with the tests producing positive feedback. Do¤ufl Otomotiv Annual Report 2007 69

Our 2007 launches In 2008, about 10% of SEAT's total car SEAT's Leon Cupra 2.0 lt TFSI 240 hp, sales through wholesale are expected In 2008, SEAT will the most sporty version with the highest to be generated by the Leon (44%-1st follow a strategy of performance in the Leon line-up, was place), the Cordoba (38%-2nd place) launched in Turkey in October. and the Ibiza (10%-3rd place), as in sustaining activities 2007. Meanwhile, the New Ibiza is also aimed at increasing The Altea XL, first introduced at the expected to attain a market share of Istanbul Auto show in November, 2006, 8%. The Altea and Toledo models will brand awareness. was launched in Turkey in December be sold through a special order with 1.6 lt 102 hp, 1.4 lt TFSI 125 hp, system, since they are considered as 2.0 lt FSI 150 hp tiptronic gasoline niche cars with their unique design. engine and 1.9 lt TDI 105 hp and 2.0 lt TDI 140 hp DSG diesel engine In 2008, SEAT will follow a strategy of versions. sustaining activities aimed at increasing brand awareness, brand Our 2008 launches image, existing customer satisfaction SEAT launched its 1.4 lt Leon TFSI 125 and realizing its sales targets. hp version in January 2008. This new engine, which will expand the existing range of engines on offer, will underpin sales in its own segment.

The Altea Freetrack, the latest member of the Altea family and the first 4x4 model of SEAT range, is planning to be launched in the first quarter of 2008 with 4x4 2.0 lt TSI 200 hp gasoline and 4x2 2.0 lt TDI 140 hp, 4x4 2.0 lt TDI 170 hp diesel engines.

The most important event for SEAT model range in 2008 is the launch of New Ibiza in the last quarter of 2008. 70 Do¤ufl Otomotiv Annual Report 2007 5,465 Skoda raised its market share to 1.53% in 2007 with sales reaching 5,465. 72 Do¤ufl Otomotiv Annual Report 2007

Demand for Skoda vehicles is constantly expanding with the brand growing ever more prominent within the industry, on the back of its 100 year long tradition of quality production and its enviable experience in the global automotive marketplace.

Mahmut Kadirbeyo¤lu Skoda Brand General Manager

“Skoda is a symbol of more than 100 years of experience and production tradition and is moving toward the position it deserves in the Turkish market with its determined strategy.”

Yüce Auto, established in Skoda, which joined the Volkswagen Skoda that maintained its sustainable Group in 1992, increased the number growth, with sales increasing from 1989, is a partner of countries where it operates to 100 452,000 vehicles in 2004 to 492,000 organization to Do¤ufl in 2007. Production continues in the in 2005, 549,000 in 2006 and 633,000 Otomotiv and manages the Czech Republic, Ukraine, Kazakhstan, in 2007. The company aims to increase importation and the Bosnia Herzegovina, India and China. its sales by 22.4% in 2008 to deliver However all cars sold in Turkey are 775,000 vehicles to its customers, with distributorship of Skoda in imported from the Czech Republic. the number of deliveries expected to Turkey. Yüce Auto provides hit one million by 2010. sales, services, and spare Rising customer satisfaction Research studies carried out in 2007 Improved market share, despite parts for the Fabia, Roomster, found rising customer satisfaction in contraction in the Turkish car market. Octavia and Superb models Skoda, which was also found to be the The Turkish automotive market from 34 authorized dealers first ranking among Volkswagen group experienced a contraction last year. brands and 4th among the whole Passenger car retail sales totaled and 41 authorized service market in the Dealer Satisfaction 373,219 in 2006, with Skoda points throughout Turkey. Survey of Turkey. commanding a 1.4% market share with 5,226 passenger cars delivered to According to the Overall Car customers. The total passenger car Satisfaction Survey, carried out by the market contracted to 357,465 IACS Research Company throughout passenger cars in 2007, although Europe and Turkey, Skoda cars left all Skoda managed to increase its retail brands behind to become number one sales to 5,465, increasing its market in terms of satisfaction. share to 1.53% - and exceeding its 2007 target of 1.52%. Do¤ufl Otomotiv Annual Report 2007 73

Performance of our models New models in 2007 and 2008 The new generation Fabia II Hatchback Three new models, the Octavia Scout, was introduced to the Turkish car Octavia RS TDI and Roomster Scout market in August 2007. The completely were introduced to the Turkish car revamped Fabia Hatchback offers four market in 2007, along with the New different versions, including the Fabia Hatchback. Classic, Ambiente, Sport and Elegance, all of which were brought The Octavia Scout, with its 2.0 lt to the market. manual, 140 hp TDI engine and the diesel version of Octavia RS 2.0 lt The new Fabia Hatchback has a more manual 170 hp TDI engine were sporty and elegant design. In its unveiled to customers. segment, the Fabia offers superior interior and boot space compared to The Roomster Scout was introduced its competitors. This new automobile with 3 engine variants to the Turkish comes with 5 new engine versions. market. Two were gasoline engines; The three gasoline engines are the a 1.4 lt 85 hp version and a 1.6 lt 105 1.2 lt, 70 hp, the 1.4 lt 85 hp and the hp version. The diesel version has a 1.6 lt 105 hp engines. There are also 1.4 lt, 80 hp TDI engine while the two diesel engines -the 1.4 lt 70 hp 1.6 lt 105 hp model boasts a tiptronic TDI and the 1.4 lt 80 hp TDI. There is gear option. a tiptronic option with a 1.6 lt, 105 hp motor. Skoda is planning to introduce new cars to the Turkish motor vehicle sector Looking at Skoda's 2007 sales figures, in 2008. First up will be the New Fabia the Fabia generated 40.3% of sales Combi, which will enter the market in and became the number best selling the first months of 2008. The model model in the Skoda line-up. offers a striking 1,460 lt of luggage space. As such, the New Fabia Combi The Skoda Octavia, meanwhile, non-commercial estate model will generated 28.7% of Skoda's total car answer the space deficiency in the B- sales, the second most popular model segment. after the Fabia. The Superb, considered as Skoda's Introduced in 2006, the Roomster is flagship and a successful Skoda's entry in the MPV segment. It representative in the D segment will has attracted attention with its spacious be replaced by the New Superb in interior and driving pleasure. Roomster 2008, which will be exhibited in the sales generated 19.5% of Skoda's Istanbul Auto Show and introduced to sales in 2007. The Superb, considered Turkish consumers in November. the flagship of the Skoda line, generated 6% of Skoda's sales in 2007. 74 Do¤ufl Otomotiv Annual Report 2007

Skoda

Skoda Retail Market Share Moreover in the last quarter of 2008, For continuous service 365 days a over the Years (%) the New Fabia Combi will be added year, 24 hours a day to the Scout series, targeting adventure The Skoda Information hotline is open seeking drivers with sporty life style. 365 days a year, 24 hours a day providing continuous quality customer 1.78 Marketing activities bring benefits to service to consumers with well-trained

1.53 Skoda and experienced personnel. 1.40 In line with its aim of improving relations with the media and customers under As a part of its after sales support, the Human Touch Project, Skoda Skoda Mobile Service provides free joined almost all of the local fairs in services such as road assistance, 2007, including those staged in Bursa, towing, rental cars, hotel Izmir, Trabzon, Kayseri, Antalya and accommodation, transportation (train, Mersin in a bid to increase customer bus) and car breakdown retrieval within communication. the two year guarantee starting from

2005 2006 2007 the car goes on the road. These The road show activities, arranged one services are provided to all Skoda day before the fairs and also attended customers under the “continuous road by press members ensured a stronger assistance” program provided by introduction of our cars to customers Skoda authorized service points and and the local media. the Mobile Assistance Center. Skoda Total Sales over the Years (Unit) In the second half of 2007, The New Skoda aims to provide its Extended Fabia, which happened to be the Warranty Service to its customers in roomiest car in its segment, and winner 2008, extending the two year warranty 8,026 of the Gold Steering Wheel, was period to four years in an attempt to launched simultaneously in the Czech increase customer satisfaction and Republic and in Turkey. Meanwhile thus become more competitive in the 5,374 5,292 the Octavia Scout, selected as 4 x4 of market. the year in the UK in 2007, the Roomster Scout, which targets adventure seeking sport enthusiasts and finally the Octavia RS TDI, one of the cars in the performance series, were launched to the Turkish market

2005 2006 2007 in 2007. Do¤ufl Otomotiv Annual Report 2007 75

Market share target in 2008 Average adequacy of Turkish dealers Yüce Auto exceeded its 2007 market increased to 82%. share target of 1.52% with a market Yüce Auto attaches great importance share of 1.53%. Yüce Auto aims to to achieving qualitative targets and increase its market share to 1.60% improving the standards of its dealers. with its new models coming into the According to this aim, a study was market in 2008. undertaken by MSX International GmbH, which audited investments and Yüce Auto ended 2007 with 41 sales measured management standards of points consisting of 34 authorized our authorized dealers throughout dealers, 7 branches and 37 authorized Turkey in our showrooms. The study service centers. revealed an average adequacy rate of 79.18% for Turkish dealers in 2006. In 2006, The Urban Science Skoda improved its standards in 2007, International GmbH surveyed 18,000 and increased the average adequacy Skoda customers in Turkey. The of Turkish dealers to 82%. Our target research focused on; for 2008 is to increase average • the appropriateness of the dealer adequacy of Turkish dealers to 85%. locations to current market centers and Skoda will launch the New Fabia • dealers' sales performances. Combi, the New Superb and the Fabia Combi Scout in 2008. This study helped identify market needs up until 2010. Yüce Auto targets more efficient and better quality service, continuing to In parallel with the findings of this supply Skoda products and unbroken study, Yüce Auto added 4 new services to the Turkish consumer. authorized dealers and 1 new branch, thus expanding its dealership network in Turkey, although Yüce Auto also carried out necessary cuts with closures of two authorized dealers and five branches which had failed to fulfill the expected performance targets or which were not optimally located for business.

In parallel with the program, Skoda will continue to carry out necessary revisions in 2008.