Ford increases Craiova investment plan to 1.2 billion euros

Ford Europe has increased the investment plan for the plant in Craiova from 675 million euros to almost 1.2 billion euros, 1 billion euros of which set to be invested from 2010-2012.

"At this time we cannot say that from now until 2012 Ford will invest more than one billion euros in Craiova, Romania. We cannot comment on the annual investments. It will largely depend on market demand. Until 2012 we will invest the 675 million euros, plus the 400 million euros of the loan from EIB," said Wolfgang Schneider, vice-president of Ford Europe for governmental and environmental affairs.

Finance Minister Sebastian Vladescu, European Investment Bank's vice-president Matthias Kollatz-Ahnen and Wolfgang Schneider, Ford Europe's vice-president for governmental and environmental affairs signed an agreement on a 400 million-euro loan yesterday, which will be used for the US carmaker's plant in Craiova, with the Romanian state guaranteeing 320 million euros of it.

"We will bring the 400 million-euro funds in Romania starting today and over the coming years as the need arises. The money will not come all at once, but in several tranches. We will determine how much money we need for each tranche," Schneider added.

The money from the EIB will be primarily used to start manufacturing a new small class model, as well as a new Euro 5 compliant EcoBoost petrol-driven engine this year, which is the most environment friendly engine made in Romania in 2010. At the same time, the small class model will be designed to get a five-star EuroNCAP safety rating, compared with three stars the Dacia models made at Mioveni get.

After 2012, Ford Romania has a third model scheduled to begin manufacturing, according to the European Investment Bank, which will mostly likely be the next generation of Transit utility vehicle.

Besides the 400 million euros for Ford Romania, EIB will also granting a 200 million-euro loan for a number of research and development projects conducted in Germany for the plant in Romania.