US company wants ARO privatisation cancelled

Automotive distributor SMD Automotive Group Inc. USA has requested the Romanian Government to cancel the privatisation of carmaker ARO Campulung, as it deems the transaction as illegal and intends to take over the Romanian plant. Cross Lander – USA bought the main stake in ARO from the Privatisation Authority last September, paying $15.8m and taking over debts and loans worth $11.4m. According to SMD managing director Jack Trotman, Cross Lander wants to “take the company’s assets, relocate production to Brazil and close down the plant.” SMD wants to take over ARO and claims it closed a contract with the Chinese Government for the delivery of 60,000 vehicles, to be made in Campulung. ZF