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Government approves additional investments of at least 130 million euros at Ford Craiova until 2019

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The government approved the extension of manufacture of automobiles and engines assumed by Ford Romania to December 31 2025. Until the end of 2019, Ford will make at Craiova an investment of at least 130 million euros.

“100 million euros from this amount will be used to manufacture a new vehicle model at Craiova and and 30 million euros for the manufacture of engines,” a government press release shows.

The Executive modified emergency order 109/2008, the legal frame which granted a state aid of 75 million euros to Ford Romania for the implementation and completion of investment projects of 860 million euros in the automobile and engine factories in Craiova.

The Ministry of Public Finance will monitor the fulfilment of obligations assumed by Ford to make an additional investment of 130 million euros and to manufacture 810,000 automobiles and 1.5 million engines at Craiova by 2025. In case Ford Romania does not fulfil the obligations assumed with the amendment of the mentioned deadline, the state aid will be recovered from Ford.

According to the source, Ford made over 2008-2012 the investment of 869.09 million euros assumed and must maintain it until December 31, 2017. The state aid authorised by EC was fully paid by the Finance Ministry. Until December 31, 2017 the Romanian state will monitor the investment and the conditions associated to it, including the manufacture by Ford of 810 thousand automobiles and 1.5 million engines.

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Friday, October 7, 2016