Ford takes over Romanian plant
BUCHAREST: Ford Motor formally took over the Automobile Craiova factory from the Romanian government Friday.
Prime Minister Calin Popescu Tariceanu handed the factorys key to John Fleming, president of Ford of Europe, saying that the automakers investment of about $1 billion would allow Romania to become the biggest car producer in southeastern Europe.
Last year, Ford bought a 72.4 percent stake in the state-owned company, paying about $88 million and vowing to invest $1 billion to upgrade and expand production. Ford said it would increase the number of employees from 3,900 to between 7,000 and 9,000.
“I believe that the presence of two carmakers on our market will encourage interest in others,” Tariceanu said.
The Renault-owned Dacia plant in Romania already produces the popular Logan model and the new Sandero.
Fleming said that the first Ford vehicles - which will be Transit Connect vans - will come out of the factory in 2009. From 2010, the plant will manufacture a small, spacious and cheap car that will be made only in Romania. Fleming declined to give more details about the new model.
From a production of 16,000 cars in 2009, the company expects to reach 300,000 cars in four years.
The takeover was delayed when the European Union launched an investigation into the sale. The EUs executive arm said the stake was worth $132 million and the Romanian state had lost $42 million.
Regulators ordered the government to demand that Automobile Craiova pay the state the lost revenue from the sale. Ford agreed to pay the sum.
The Romanian government took over the debt-laden factory in 2006 after the previous owner, Daewoo Motor of South Korea, went bankrupt in 2000.
