Ford will not pay debts of Automobile Craiova, after sell-off

The official noted the debts Romanian car maker Automobile Craiova stood at maximum 1 billion euros. Vosganian noted the debt will not be taken over by Ford as it has nothing to do with the American car maker’s activity.

The debt is still part of an ongoing trial, a previous decision showing this does not exist because the former Automobile Craiova owner did not comply with the conditions imposed in the privatization contract. Vladescu said a special law will be issued in order to clarify the current situation of the Romanian car maker.

Ford Motor Company, America’s second largest carmaker, offered 57 million euros for a stake in the Romanian carmaker Automobile Craiova. This is the U.S. carmaker’s final and improved offer after an initial 55 million euros for a 72.4 percent stake the Romanian state holds in Automobile Craiova.

The final financial offer shows Ford and the institution in charge of privatization, the Authority for State Assets Recovery (AVAS), agreed to transfer the assets existing in Automobile Craiova, Daewoo Automobile and Mecatim Craiova into a newly created factory.