mrfixit
Chief Chaotic Engineer
Ford Motor Company would spend EUR675m developing the former Daewoo manufacturing plant in Craiova, Romania, into one of the major facilities supporting its European vehicle and engine production requirements, the company said on Monday.
When the Romanian government put a 72-percent stake in Automobile Craiova SA on the block, it got one bidder: Ford. The Blue Oval first offered fifty-five million euros in July, then upped it to fifty-seven million euros, which equals $78 million dollars.
Before the government stepped in, Craiova was owned by Daewoo Motors' Romania, which was separate from the GM-owned Daewoo. The Romanian arm went bankrupt in 2006. The state bailout came to the tune of $61 million dollars, which paid for assets and debts. The last year of its operation under Daewoo, the plant put out 24,000 cars. Ford, after a planned $675 million investment in the plant, wants to up that production to 300,000 cars. Conjecture is that Ford will make the Festiva there.
The deal is expected to close on September 12, during the Frankfurt Auto Show. Yet more evidence that in spite of troubles at home, Ford is raging bullish on its overseas operations
.
Craiova (/kra'jo.va/) is a Romanian city, the capital of the county of Dolj, situated near the East bank of the river Jiu in central Oltenia. It is a long time political center, and is located at approximately equal distances from the Southern Carpathians (north) and the Danube (south). Craiova is the chief commercial city west of Bucharest.
When the Romanian government put a 72-percent stake in Automobile Craiova SA on the block, it got one bidder: Ford. The Blue Oval first offered fifty-five million euros in July, then upped it to fifty-seven million euros, which equals $78 million dollars.Before the government stepped in, Craiova was owned by Daewoo Motors' Romania, which was separate from the GM-owned Daewoo. The Romanian arm went bankrupt in 2006. The state bailout came to the tune of $61 million dollars, which paid for assets and debts. The last year of its operation under Daewoo, the plant put out 24,000 cars. Ford, after a planned $675 million investment in the plant, wants to up that production to 300,000 cars. Conjecture is that Ford will make the Festiva there.
The deal is expected to close on September 12, during the Frankfurt Auto Show. Yet more evidence that in spite of troubles at home, Ford is raging bullish on its overseas operations
.
Craiova (/kra'jo.va/) is a Romanian city, the capital of the county of Dolj, situated near the East bank of the river Jiu in central Oltenia. It is a long time political center, and is located at approximately equal distances from the Southern Carpathians (north) and the Danube (south). Craiova is the chief commercial city west of Bucharest.
