Gov’t Oks Ford investment in Craiova by 2025

The Government approved the extension of the investment made by Ford in Romania until December 31, 2025. At the same time, by the end of 2019, Ford will make an extra investment of minimum EUR 130 M in Craiova, exclusively from its own sources and without any state aid elements, reported.

The Government mentions that EUR 100 M will be used to introduce a new car model in Craiova and the rest of EUR 30 M for the engine production.

The Executive was thus amending the emergency ordinance no. 109/2008 through which it granted Ford a state aid worth EUR 75 M to implement and conclude the investment projects in the car and engine factory in Craiova, worth EUR 869 M.

The amendment was made to secure the follow up of the Ford investments in Craiova and to enforce the role of the factories within the car sector, by introducing a new vehicle model, as well as to maintain the number of jobs, meaning 2,700 employees and to potentially create more jobs. The Gov’t also explains that Okaying the investment would attract contributions to the regional development by the direct payment of taxes during 2014-2025, worth approx. EUR 230 M. The Executive also explains that by extending the Ford investments in Romania, the multiplier effect would bring about USD 30 billion during 2014-2025.

The Finance Ministry will monitor the way that Ford will achieve the assumed obligation to invest the extra EUR 130 M investment, as well as of the obligation to make 810,000 cars and 1.5 million engines in Craiova by 2025. If Ford Romania fails to fulfill obligations in the above-mentioned deadline, the state aid will be recovered from the company.

Ford’s investment during 2008-2012 mounted to EUR 869 M, being compelled to maintain this investment until December 2017.

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