Romanian Agency Dialogues With Ford for Sale of Former Daewoo Car Factory

Officials said last Friday that Romania'splans.
privatization agency will begin its dialogue with FordFleming also said that if they would be successful
Motor Co., the only bidder in the sale of a formerin their bid, they would expect to expand and
Daewoo car factory in southern Romania.improve the Craiova manufacturing operations,
At an event in Bucharest, Ford's bid was openedaugment employment opportunities and attract
but no details of the offer were revealed.additional suppliers to the area.
Sebastian Vladescu, who is the deputy Finance,Other two companies - General Motors Corp. and
and Economy Minister and head of theJC Russian - which sent letters of intent to
privatization committee in charge of the sale, saidparticipate in the sale have not submitted bids.
that it looks like all the documents requested haveThe government has said that price would not be
been submitted at a glance. He added that talksthe only factor considered in the sale. It would
were to begin on Monday with Ford to negotiatealso consider the ability of the buyers to
on the terms of the sale.maximize production and use Romanian-based
As the only bidder in the sales, Ford confirmed insuppliers.
a press release that it wants to buy the plant.The privatization agency, which is selling the
According to John Fleming, Ford of Europegovernment's 72 percent stake in the company,
President and CEO, their company offers the bestwill sign a memorandum with several smaller
combination of financial, technological andshareholders in order to sell their stakes as well,
environmental commitments to be able tothus allowing the buyer to take over 95 percent
modernize the Craiova-based plant.of the stock.
Maker of quality Ford catalytic converter, FordThe factory, which was owned by the insolvent
adheres to the fact that the facility in Craiova is aKorean company, has nearly 4,000 employees
strategically significant site for the future growthand can produce a maximum of 200,000 cars and
of the company. Ford of Europe produced 1.86300,000 engines every year.
million units at its seven assembly plants in 2006Last year, Romania paid US$60 million (€44
and additional manufacturing space is required tomillion) to purchase back a 51-percent stake in the
meet its emulous new product as well as growthcompany from Daewoo's creditors.