Ford offers US$78 million for Romanian auto plant
Saturday, September 8, 2007
"The offer of Ford Motor Company for a 72.4 percent stake is €4.1556 per share or €57 million overall," said Sebastian Vladescu, head of the State Property Agency (AVAS), after opening Ford's improved offer. Vladescu added that the contract may be signed on September 12, during the auto show in Frankfurt.
The Romanian government bought back the Craiova-based car maker from Daewoo Motors, in late 2006 for US$51 million. As the Korean company was bankrupt, the government had to pay another $10 million for debts stemming from past loans. Ford is the only bidder for the purchase of the factory.
According to Washington Post, many auto-part makers have set up in the new European Union member country, attracted by cheap labor, favourable tax rates and the rising output of Renault's Dacia plant. The vice president of Dacia, Constantin Stroe, said that the price Ford offers is not important. "It's important to have the factory working as soon as possible", he added. "With this production facility, Romania will become an important auto production center in Europe", concluded Stroe, cited by HotNews.
- AFX News Limited. "Ford offers 57 mln eur for Daewoo factory in Craiova, Romania" — , September 7, 2007
- The Associated Press. "Ford to pay €57 million for 72.4 percent stake in Romanian auto plant" — , September 7, 2007
- Ivona Barić. "Ford Offers 57 mln Euro for Automobile Craiova" — , September 7, 2007
- Reuters. "Ford offers $78 million for Romanian carmaker" — , September 7, 2007
- HotNews. "Ford offers 57 million euros for Automobile Craiova" — , September 7, 2007