{"id":36969,"date":"2017-01-24T21:26:12","date_gmt":"2017-01-24T21:26:12","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/01\/24\/political-rift-kills-turkey-austria-engine-deal\/"},"modified":"2026-08-07T22:59:38","modified_gmt":"2026-08-07T22:59:38","slug":"political-rift-kills-turkey-austria-engine-deal","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/land\/2017\/01\/24\/political-rift-kills-turkey-austria-engine-deal\/","title":{"rendered":"Political Rift Kills Turkey-Austria Engine Deal"},"content":{"rendered":"\n<p>ANKARA, Turkey \u2014 Growing political tensions between Ankara and Vienna in recent months have resulted in the termination of an otherwise prospective deal between a Turkish and an Austrian company, both engine specialists.<br\/><br\/> <span lang=\"EN-GB\">In October 2015, TUMOSAN, a privately owned Turkish engine maker, signed a deal with AVL List, an Austrian firm, for technical support for the engine that the Turkish company had been commissioned to develop.<\/span><br\/><br\/> <span lang=\"EN-GB\">Under the deal, TUMOSAN would get technical support from AVL for the power unit of the Altay, Turkey\u2019s first indigenous, new-generation main battle tank in the making. AVL also would provide know-how for the integration of the engine to the tank.<\/span><br\/><br\/><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The Turkish government insisted that the country should finally have the intellectual property rights and export licences for each part of the engine.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In March 2015, TUMOSAN signed a \u20ac190 million (approximately US $200 million) contract with the Turkish government to design an engine for the Altay.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The program involves the indigenous design, development, prototype production, testing and qualification of an engine for the Altay. TUMOSAN also will design and develop a transmission for the tank and produce critical parts for its engine, including the diesel pump, electronic control unit and injector.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With know-how from AVL, TUMOSAN hoped it would conclude the program within 54 months and &#8220;with maximum possible local content.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But TUMOSAN recently announced that it terminated its contract with the Austrian company due to unresolved disputes over export licences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A statement from the Turkish company said: &#8220;Under the contract [with AVL] the company had to provide us with the necessary [Austrian] government licenses within 90 days. After the company&#8217;s requests for extension for several times it became clear that the Austrian government insisted on issuing export licences on conditions that it would be interfering with the domestic [political] affairs of Turkey. After those conditions were rejected by SSM [Turkey&#8217;s procurement agency, the Undersecretariat for Defense Industries] our company canceled the Technical Support Provider agreement [with AVL].&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">TUMOSAN also said it is negotiating with SSM a number of alternative engine solutions based on maximum local industrial input.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Turkey and Austria have had problematic relations in recent months after Vienna began to loudly criticize Turkey&#8217;s alleged democratic shortage, especially after Ankara announced an emergency rule in response to a failed coup last July.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tens of thousands of Turks have been arrested and more than 100,000 government employees have been purged since the coup attempt. The Austrian government has said it would block Turkey&#8217;s membership in the European Union due to its failure to share common democratic culture with the rich European club.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">TUMOSAN&#8217;s deal with AVL was the first of its kind, ending up in failure due to political rift between Turkey and a western country. But it may not be the last.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;Most Western government[s] will likely have a more pragmatic approach and ignore Turkey&#8217;s poor democratic credentials when it comes to arms sales,&#8221; said one London-based Turkey specialist. &#8220;Yet there may be some that may act more on political motives.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Turkish procurement bureaucracy shrugs off the threat. &#8220;Our local industry&#8217;s capabilities are far more advanced than they were a decade ago. It may cost us extra time, but we can develop systems on our own,&#8221; said one SSM official. &#8220;Or buy know-how from countries that do not interfere with our domestic [political] affairs.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Industrialists say that may push Turkey into solutions from manufacturers from the politically Eastern world. &#8220;Save for a couple of strategic systems, Western producers are no longer &#8216;indispensable&#8217; for customers like Turkey,&#8221; according to one source.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rift between Turkish and Austrian engine makers may cause delays in the Alay program, analysts agree. SSM will announce a bidding for the serial production of the tank. The multibillion-dollar contract may eventually involve 1,000 tanks to be acquired in batches of 250.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Growing political tensions between Ankara and Vienna in recent months have resulted in the termination of an otherwise prospective deal between a Turkish and an Austrian company, both engine 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