The presence of major investors in the area is likely to stir a fierce battle over suppliers and mostly over the qualified labor force, which Romania already lacks. It will also have a significant impact on the real estate prices.
The presence of Ford in Craiova could double the contribution of car and auto parts producers to the Gross Domestic Product (GDP) and create some 25,000-30,000 new jobs in the sector. Estimates show the value of Ford exports could reach €2 billion by 2011.
Deal. Last week, Ford stroke a deal with the Authority for State Assets Recovery (AVAS) to buy 72 percent of Automobile Craiova for €57 million, €2 mln more than the initial offer. For the remainder of the shares, Ford is negotiating with Financial Investment Company (SIF) Oltenia, the owner of the minority stock. The most significant impact of Ford’s taking over Automobile Craiova is likely to be in the field of auto parts production. There will be an increase in the manufacturer’s activity, on one hand, and new producers will enter the market, on the other hand, according to Automobile Dacia’s Vice-President, Constantin Stroe, for Business Standard.
Jobs. Also, the job market will be affected by the takeover. State secretary in the Economy Ministry, Sebastian Vladescu, said up to 30,000 people could be employed at the factory and for activities connected to Ford’s operation. The highest risk for Ford is that the company will not be able to find enough skilled workers at competitive prices, according to the Economic Director of car parts producer Sumitomo Electric Wiring Systems (SEWS).
