Daewoo, losses of over 345m euros last year

Daewoo Automobile Romania, for which Ford US carmaker is in talks with the Romanian state to take over, registered net accounting losses of 345m euros in the previous financial year, while total revenues exceeded 820m euros. “The 2006 losses were generated by the expenses related to the repurchase of Automobile Craiova shares from Korean shareholders and to the setting up of reserves and accounting provisions,” explained Valeriu Garlea, communications manager with Daewoo. On the other hand, the company’s turnover increased in 2006 (according to the updated results) by almost 35%, to 283m euros, from 210m in the previous year, in the wake of the operation at full capacity of production facilities for gearboxes and engines, destined for export. Ford is currently in talks with the Commission for the privatisation of Automobile Craiova to take over Daewoo plant. “We’re in advanced talks and I hope we will sign an agreement by early September. The special law for the sale of Automobile Craiova will be approved by the Government after the privatisation contract is signed,” stated the Romanian prime minister Calin Popescu-Tariceanu.