Negotiations with the Ford Motor Company over the takeover of the former Daewoo Craiova plant are scheduled to begin today, after the privatisation commission validated the participation papers submitted by the US carmaker - the sole bidder for the plant.
"We will increase the number of employees in Craiova, draw other component suppliers to the region and improve and boost the production capacity of the plant," John Fleming chairman and chief executive of Ford for Europe told ZIARUL FINANCIAR.
The Craiova plant employed approximately 4,000 people at the end of 2006, an increase from 3,500 in 2005. Unlike Renault, which after taking over Dacia, announced the "5,000 euro" project, Ford does not have a new model in its portfolio that would directly compete on the low-cost car market in Central and Eastern Europe.
"We will continue to monitor the low-cost market segment, but have nothing to communicate regarding such a model," Fleming added. The cheapest Ford available in Europe is the Ka, which starts from a price of 7,890 euros, excluding VAT. The new generation of the mini segment model is assembled in the Tichy plant in Poland, using the same production line as the new Fiat 500, which was launched in Italy mid last week.
The privatisation commission of Daewoo Craiova validated the participation papers filed by the only bidder, Ford Motor Company. The negotiations with the US-based company are scheduled to start today, with the deal expected for completion until September 1. Once the legal advisors give the go-ahead, the commission will open the technical and financial bids today, in the presence of the Ford representatives.
"I'm over 90% positive Ford's bid will be accepted and we will finalise the privatisation contract," Sebastian Vladescu, the chairman of the commission appointed by the State Assets Resolution Authority (AVAS), and s
