Fords to invest over 675m euros in Craiova

Ford has submitted a bid to take over the Automobile Craiova car plant, pledging to make direct investments worth 675 million euros and to double the number of employees, up to 9.000. At the end of 2006, the plant had some 4,000 employees, up from the 3,500 registered in 2005. According to officials of the Privatisation Commission, the car production will be increased to 300,000 units annually, as of 2011, when investments in the expansion of the production capacity are scheduled to be finalised. “The pledges made by Ford in regard to the Craiova-based plant include an increase in production as of 2011 to 300,000 cars and 300,000 engines annually after 2011. Also, the company will conduct direct investments worth 675 million euros, which will trigger direct expenses worth more than one billion euros for Romania. Ford Company has agreed to reach a 60% degree of integration and the number of staff will double at the Craiova plant, up to 7,000-9,000 persons,” the minister for relations with Parliament, Mihai Voicu, told Mediafax at the end of last week. Voicu stated he had been mandated by the chairman of the Privatisation Commission. On the other hand, Teodor Atanasiu, chairman of the State Assets Resolution Authority (AVAS) has said Ford Europe submitted a technical bid for Automobile Craiova that exceeded the criteria imposed by the Romanian State, which “paves the way for a successful privatisation (…).”