Wednesday, March 14, 2012

Romanian government gives $97.5 million in state aid to Ford to help domestic production

By Associated Press, Published: March 13

BUCHAREST, Romania — The Romanian government says it will invest $97.5 million (€75 million) of state aid in Ford Motor Co. to help production at its compact van factory in southern Romania.

Government spokesman Dan Suciu says Tuesday the money is earmarked for the production of automobiles and automobile engines.

Ford launched the production of its new compact van at a factory in Craiova, southern Romania in 2009.

Suciu said it will produce some 810,000 automobiles and 1.5 million engines from 2013 to 2017.

In 2007, Ford bought a 72.4 percent stake in the state-owned Automobile Craiova, paying $88 million and vowing to invest $1 billion to upgrade and expand car production.

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