Sell-off contract for Automobile Craiova to be approved by Romanian government

The contract will be signed on September 12 at the Auto Salon in Frankfurt. Members of the privatization commission today will iron out the last details of the contract to be approved tomorrow.

The privatization commission opened on September 7 Ford's final financial offer improved and irrevocable, the sole investor enrolled in the process, of 57 million euros for the Romanian state’s 72.4 percent stake. Ford engaged itself to restructure Automobile Craiova, Daewoo Automobile and Mecatim Craiova by transferring selected assets of the three companies into a newly created factory.

Negotiations on the privatization of Automobile Craiova started on July 18 after Ford submitted the technical offer on July 5.

Automobile Craiova has a share capital of 39,783,166 lei. It owns 49 percent in Daewoo Automobile Romania and manufactures and sells cars and auto parts under the license of General Motors Daewoo Auto Technologies.