Ford requests review of Automobile Craiova privatization contract

Newsroom 10/05/2010 | 11:58

Ford Romania, which controls a 72.4 percent stake in carmaker Automobile Craiova, has asked the Authority for the Recovery of State Assets (AVAS) to revise a series of terms included in the privatization contract inked in 2007. The AVAS has already created a commission in charge of negotiating with the company.

Ford paid Romania EUR 57 million for its stake in the Craiova-based plant. The European Commission (EC) investigated the deal and subsequently concluded Romania had accepted a lower price for the plant in exchange for Ford’s pledge to produce over 250,000 cars in Craiova by 2011 and to create additional jobs. Romania was found to have granted Ford illegal state aid worth EUR 27.56 million and the EC asked the Romanian authorities to recover the difference from the carmaker.

Later, the commission approved state aid worth EUR 143 million for a project Ford plans to develop in Craiova, as well as EUR 57 million in aid for staff training at the Romanian plant.

The complex deal and the changes made afterwards prompted Ford’s call for a review of the contract, according to AVAS.

In April, Ford Romania started production of the Transit Connect model at its Craiova plant. Before that, the carmaker had assembled only 400 Transit Connect compact panel vans using parts shipped from its Turkish plant.

The automaker is slated to start production of the B-Max small-class model in Craiova later this year.



BR Magazine | Latest Issue

Download PDF or read online: July 2023 Issue | Business Review Magazine

The July 2023 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “At a Crossroads: Budget Deficit Endangering Romania’s Economic
Newsroom | 31/07/2023 | 14:14

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of

    I agree with the storage and handling of my data by

    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue