<<BACK TO HOME

Ford has reached agreement with the Romanian government to buy the Craiova car manufacturing plant and start building a new small car there.

At a press conference today at the Frankfurt Motor Show Ford's European president and CEO John Fleming announced the deal to take a 72 per cent stake in a Romanian car plant. The Romanian prime minister, Calin Popescu-Tariceanu, was also at the press conference.

See earlier ae-plus.com story

Ford is paying €57 million for the plant, which used to build Daewoo cars, and has guaranteed that it will spend a further €675 million to upgrade and modernise the plant. It intends to double employment from 3,900 people to 7,000 and to make more than 300,000 cars and engines a year, with more than 90 per cent scheduled for export.

Fleming said: "This is great news for Ford, for Romania and for Craiova. We are acquiring a plant with a skilled and enthusiastic workforce and together we will work to transform the plant into an industry benchmark for vehicle manufacturing in Central Europe."

Prime Minister Tariceanu said: "Ford has shared with us their exciting vision for the future of Craiova. In time the plant will be producing over 300,000 Ford vehicles and engines a year, all proudly made in Romania."

Ford had emerged as the only bidder in the sale by the Romanian government of a controlling stake in the former Daewoo plant after Daewoo's former partner GM unexpectedly withdrew.