On March 19th Ford and Romanian Authority for State Assets Recovery (AVAS) signed the Addendum to Automobile Craiova privatization contract, originally signed in 2007.
“The negotiations with Ford began, officially, when the technical offer from the American carmaker was validated in the second half of July. The most intense period was around two weeks before the contract signing,” said Florentin Tuca, managing partner of the law firm Tuca, Zbarcea and Associates, which represented AVAS.
The period for project implementation has extended until December 31st 2012 and other additional provisions imply small updates the original contract to reflect the business situation, particularly in terms of regional aid. Dr. Wolfgang Schneider, Vice President for Legal Affairs, government and environment at Ford Europe said that Ford is happy that the negotiations with the Romanian government were successfully concluded and that the Addendum to the Automobile Craiova privatization contract was signed.
Ford will invest over 675 million euro in the plant to create a modern facility globally competitive both to engines and vehicles. Volume production will begin this year in Craiova with the 1.0-liter EcoBoost engine and the new Ford B-MAX. Craiova plant will focus on the production of Class B vehicles, which will offer Ford the possibility to create effective systems of coordination in terms of components and suppliers for similar vehicles in terms of size.