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Ford has told the Romanian government that it intends to make the Craiova plant into one of the biggest carmaking factories in the group, with investment of €675 million.

Ford emerged earlier this month as the only bidder for the Automobila Craiova factory after GM decided at the last minute not to submit a bid. The plant has been making former Daewoo cars, and had an output of just 24,000 cars in the past year. It had been thought that GM would want to continue making Daewoos, now branded as Chevrolets, there.

Ford has now unveiled plans to increase production at Craiova to 300,000 cars a year by 2012, with a further 300,000 engines. In talks with the Romanian Prime Minister and mambers of the country's privatisation committee, Ford said it saw the factory as "one of the major facilities supporting Ford of Europe's vehicle and engine production requirements".

Employment at the plant would increase from the present 3,900 to 7.000, with the potential to grow to 9,000, Ford said.

Ford of Europe president and CEO John Fleming said: "By 2012 we would expect to be spending around €1 billion a year in Romania to support the Craiova plant. We are excited about the opportunity."