Turkish armored vehicle maker Otokar said Friday it will pay claims for compensation totaling 199 million Romanian lei, about €39 million, filed by Romania’s state-owned Romtehnica defense trading company over delays tied to a major 4×4 vehicle contract.
In a disclosure to the İstanbul stock exchange, Otokar said Romtehnica submitted a claim of 191.8 million lei, alleging Otokar failed to meet interim targets on time for preparations linked to local production in Romania. Otokar said it has filed a lawsuit to annul that claim and that discussions between the parties are ongoing, but it will make the payment on the due date while reserving its legal rights.
Otokar also said Romtehnica filed an additional claim of 7.2 million lei due to the late delivery of 194 vehicles from the first batch manufactured at Otokar’s facilities in Turkey. The company said despite the fact that the sale of those vehicles has been completed, it will pay the amount due in January, again while reserving its rights.
Otokar announced in 2024 that it had won a tender issued by Romtehnica, a company linked to Romania’s Ministry of National Defense, to supply 1,059 4×4 light armored tactical wheeled vehicles. Under the plan described by Otokar, the first 278 vehicles are to be produced in Turkey, with the remaining vehicles manufactured in Romania, with deliveries scheduled to be completed within five years starting from the final quarter of 2025.
Otokar signed a joint venture agreement in April 2025 with Romanian defense contractor Automecanica for local production of Cobra II vehicles in Romania.
Otokar said Romtehnica’s claims were received on December 17 and December 24, but the company delayed its market disclosure, arguing that earlier publication could harm its interests during talks and could mislead investors.