September 14, 2007

Ford to purchase vehicle manufacturing plant in Romania

Frankfurt, Germany – The Ford Motor Company has reached an agreement with the Romanian government for the purchase of the Craiova vehicle manufacturing plant in that country. Documents were signed yesterday to begin the process of transferring ownership to Ford; a special law will make its way through parliament, allowing Ford to become the new owner towards the end of the year.

“This is great news for Ford, for Romania and for Craiova,” says John Fleming, Ford of Europe President and CEO. “We are acquiring a plant with a skilled and enthusiastic workforce, and together we will work to transform the plant into an industry benchmark for vehicle manufacturing in Central Europe.”

Ford will pay 57 million Euros to the government for its 72.4 per cent stake in Automotive Craiova, and transfer a significant land parcel not required for production plans to a new company. Ford has also committed to spending another 675 million Euros to upgrade and modernize the plant, and by 2012, expects to spend around one billion Euros a year in Romania to support the operations. Employment will almost double from the existing 3,900 workers to 7,000.

Craiova will be a cornerstone of Ford Europe’s manufacturing base; the company plans to increase sales in Europe to over two million units per year.

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