Ford Romania to stop production of Daewoo engines and gearboxes for GM

Ford Romania, the second largest automaker on the Romanian market, which holds 96.6% in Automobile Craiova, will end production of engines and of gearboxes halfway through this year, in preparation of production of the Transit Connect utility vehicle in the second half of the year. So, after 14 years of producing Daewoo engines and cars, the plant will focus exclusively on the new Ford models. "The contract with GMDAT (formerly Daewoo, now held by General Motors) to supply engines and gearboxes, will expire at the end of June this year," Nadia Crisan, Ford Romania representative, told ZF. The Craiova plant's annual production of gearboxes and engines ranges from 150,000 to 200,000 units, which are exported to GMDAT plants - formerly Daewoo, in Kazakhstan, Ukraine, Poland, Egypt and South Korea, either in the form of finished products, or as components. The suspension of engines and gearboxes production affects around 1,000 employees. Production of the Transit Connect utility vehicle, meant to be sold on the European market, will be dependent on market demand, with commercial vehicles currently affected by the financial crisis, according to Ford officials, who originally forecast a production of 30,000 units in 2009. In view of starting production, Ford Romania is collaborating with several component suppliers present on the Romanian market with production facilities. Ford officials, who last year invited 40 component manufacturers to Craiova, did not wish to specify which were the suppliers they had already signed a collaboration contract with or give their number.