Daewoo Automobile Craiova to go up for sale in March

Newsroom 11/09/2007 | 16:31

Interested companies should then submit their bids within 30 days. Media reports indicate that the car manufacturer will be privatized like BCR, with preliminary and then final offers, which might be accepted until the beginning of June, according to the reports. The authorities intend to announce the new owner of the company in June.
The privatization commission comprises trade and commerce minister Varujan Vosganian, AVAS president Teodor Atanasiu as well as the state secretaries Razvan Oraseanu and Laszlo Gyerko, transport minister Radu Berceanu and labor minister Gheorghe Barbu.
General Motors, Renault-Dacia and Chinese car producer Cherry have announced their interested but not confirmed anything. Ford Motors issued a press release to state the company's intention to acquire the Craiova facility. “We will continue to develop our business plan, and be prepared to pursue due diligence when the government begins the privatization process,” it read.
Until a final decision is made on the privatization and buyer, however, the company is refraining from further comment.
After success with models such as the Cielo, Tico, and Matiz, Daewoo went through a transition phase when the majority shareholder, South Korean, Daewoo Motors, suffered financial problems, and was partly bought by General Motors. However, the Romanian branch was not included in the transaction.
Company representatives estimate the turnover of the company will increase by 20 to 30 percent, to about $350 million in 2006, compared with 2005, mainly because of the increase of 250 percent in engine production, and about 60 percent in gearbox production. Car production also rose in 2006, by about 10 percent.

Roxana Mihul

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