Ford asks Government for permission to push back start of manufacturing in Craiova

Ford has changed its mind about the decision to start production of the new small class car this year, citing the decline in sales on the European market in order to get a postponement of the original deadlines.
The current economic conditions and the dwindling European market after the end of the car scrappage schemes in Europe will make Ford ask for a renegotiation of the clauses in the privatisation contract of Automobile Craiova.
“Ford will request the Government to allow a postponement of the start of manufacturing the new car, considering it is pointless to hurry on a market that won’t probably rebound any sooner than 2012. At the same time, they want to return part of the assets they took over together with the plant in Craiova to us as soon as possible,” official sources said. The quoted sources added that no other kind of financial or fiscal aid from the state was being discussed.
According to official statements, “the commitment Ford has made to Craiova and Romania remains unchanged. As such, the plan is to fulfil the commitments undertaken in terms of jobs, investment and production capacity, despite the unprecedented economic crisis, which started when Ford signed the privatisation contract,” said Nadia Crisan, a member of Ford Romania’s Board of Directors. Ford officials expect business of the plant to pick up once the car market rebounds.