Ford offers US$78 million for Romanian auto plant
{{date|September 8, 2007}}
[[Image:Ford Motor Company logo.png|thumb|210px|right|Ford Motor Company logo.]][[Image:Craiova in Romania.png|thumb|right|200px|The location of the future Ford factory in Romania]]
[[w:Ford Motor Company|Ford Motor Company]], the [[United States|U.S.]] car maker, will reportedly pay €57 million (US$78 million) for a 72.4 percent stake in the [[Romania]]n assembly plant [[w:Automobile Craiova|Automobile Craiova]], a Romanian official said Friday.

"The offer of Ford Motor Company for a 72.4 percent stake is €4.1556 per share or €57 million overall," said Sebastian Vladescu, head of the State Property Agency (AVAS), after opening Ford's improved offer. Vladescu added that the contract may be signed on September 12, during the auto show in Frankfurt.

The Romanian government bought back the [[w:Craiova|Craiova]]-based car maker from [[w:Daewoo|Daewoo Motors]], in late 2006 for US$51 million. As the Korean company was bankrupt, the government had to pay another $10 million for debts stemming from past loans. Ford is the only bidder for the purchase of the factory.

According to ''Washington Post'', many auto-part makers have set up in the new European Union member country, attracted by cheap labor, favourable tax rates and the rising output of Renault's Dacia plant. The vice president of Dacia, Constantin Stroe, said that the price Ford offers is not important. "It's important to have the factory working as soon as possible", he added. "With this production facility, Romania will become an important auto production center in Europe", concluded Stroe, cited by ''HotNews''.

== Sources ==
*{{source|url=http://www.forbes.com/markets/feeds/afx/2007/09/07/afx4092840.html
|title=Ford offers 57 mln eur for Daewoo factory in Craiova, Romania
|author=AFX News Limited
|pub=Forbes.com
|date=September 7, 2007}}
*{{source|url=http://www.iht.com/articles/ap/2007/09/07/business/EU-FIN-COM-Romania-Ford.php
|title=Ford to pay €57 million for 72.4 percent stake in Romanian auto plant
|author=The Associated Press
|pub=International Herald Tribune
|date=September 7, 2007}}
*{{source|url=http://www.javno.com/en/economy/clanak.php?id=78712
|title=Ford Offers 57 mln Euro for Automobile Craiova
|author=Ivona Barić
|pub=Javno
|date=September 7, 2007}}
*{{source|url=http://www.washingtonpost.com/wp-dyn/content/article/2007/09/07/AR2007090700711.html
|title=Ford offers $78 million for Romanian carmaker
|author=Reuters
|pub=The Washington Post
|date=September 7, 2007}}
*{{source|url=http://english.hotnews.ro/Ford-offers-57-million-euros-for-Automobile-Craiova-articol_45853.htm
|title=Ford offers 57 million euros for Automobile Craiova
|author=HotNews
|pub=HotNews
|date=September 7, 2007}}
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[[Category:Romania]]
[[Category:United States]]
[[Category:Economy and business]]
Ford Motor Company logo.The location of the future Ford factory in Romania
Ford Motor Company, the U.S. car maker, will reportedly pay €57 million (US$78 million) for a 72.4 percent stake in the Romanian assembly plant Automobile Craiova, a Romanian official said Friday.

"The offer of Ford Motor Company for a 72.4 percent stake is €4.1556 per share or €57 million overall," said Sebastian Vladescu, head of the State Property Agency (AVAS), after opening Ford's improved offer. Vladescu added that the contract may be signed on September 12, during the auto show in Frankfurt.

The Romanian government bought back the Craiova-based car maker from Daewoo Motors, in late 2006 for US$51 million. As the Korean company was bankrupt, the government had to pay another $10 million for debts stemming from past loans. Ford is the only bidder for the purchase of the factory.

According to Washington Post, many auto-part makers have set up in the new European Union member country, attracted by cheap labor, favourable tax rates and the rising output of Renault's Dacia plant. The vice president of Dacia, Constantin Stroe, said that the price Ford offers is not important. "It's important to have the factory working as soon as possible", he added. "With this production facility, Romania will become an important auto production center in Europe", concluded Stroe, cited by HotNews.
Romania United States Economy and business