Automobile Craiova privatization by Ford to be finalized in March

The decision follows a European Commission ruling that Ford must forego €27 million in state aid, as the buying price for the local factory was lower than its market value.

“The Commission’s investigation shows that conditions [established by the Romanian state for the privatization] lead to a lower sales price. The 72.4 percent participation in the basic industrial assets to be purchased by Ford was estimated at €84 mln. As a result, by setting conditions of a nature other than financial, Romania gave up income worth €27 million,” according to a press release published by Ford of Europe. Last year, Ford signed the deal to acquire the local car maker for some €55 mln. Ford representatives also committed to make significant investments in the factory in the coming years.

Ford of Europe representatives hailed the end of EC’s investigation into the privatization process for Automobile Craiova, as it “allows us to carry on with proceedings needed to acquire the factory,” according to Ford of Europe’s President, John Fleming.

Fleming added that plans and commitments made by Ford upon signing the privatization deal remain unchanged.