Ford intends to take over Daewoo Craiova

Ford Motor has voiced interest in buying the Craiova-based Daewoo plant with a view to expanding production capacities, in order to cover the high demand from the European market, the CEO of Ford Europe, John Fleming, was quoted as saying by the Automotive News Europe. The Ford plants in Europe barely manage to meet the regional demand, added Fleming. According to him, the European Ford plants manufactured 1.8 million vehicles last year, exceeding the maximum production capacity by 10%, a situation that is unsustainable in the long-term. “We urgently need to increase our capacity by producing 150,000 vehicles and later increasing this level to 200,000 units,” added Fleming. This year, Ford expects to sell around two million vehicles in Europe. Last month, the State Assets Resolution Authority (AVAS) announced the privatisation of Automobile Craiova, the owner of the Daewoo Automobile Romania plant, and is expecting offers for a 72.4% stake in the share capital by July 5th. The American carmakers General Motors and Ford, as well as the Russian firm JSC Russian Machines, a division of the group held by the tycoon Oleg Deripaska, have already expressed an interest in taking over the plant. Automobile Craiova holds a 49% stake in the Daewoo Craiova plant, with the remaining shares controlled by the plant itself. Daewoo Automobile repurchased the car plant shares, formerly held by the Korean company Daewoo Motor, for 60 million dollars.