Ford still pondering bid for Daewoo Craiova

Ford has yet to make a decision about whether to bid for the controlling interests in Daewoo Craiova, the head of Ford Motor’s European division John Fleming told Reuters. Fleming said the potential acquisition of the plant in Craiova would give the American carmaker the possibility to boost sales in Europe, especially in less developed states, on condition that it should make models that are suitable for these markets. “I did not say we will act in this regard, but I believe we have a real opportunity to continue increasing the volumes sold in Europe,” specified the Ford official, referring to a possible bid fro the Craiova-based carmaker. Two government officials told Reuters that the automotive groups interested in taking over Daewoo Craiova were Ford, General Motors, Renault-Nissan and Chery Automobile (China). The South-Korean company Daewoo Motor owns 51% in the Craiova-based carmaker, while the remaining 49% is held by Automobile Craiova, in which the state controls 72.4%. The Romanian state has reached an agreement with the Korean party to take over Daewoo Craiova and will put the company up for sale after signing the contract to take over 51% in the company. Ford’s European division expects sales to pick up speed in the second half of this year. European sales went up 3% in the first half, to 912,000 units, driven by the increase in demand for commercial vehicles, by the significant sales of small cars and by significant volumes sold in Russia.