Ford may receive state aid of 17.5 million euro in 2008
Out of the total sum of the state aid, 94.45 million will be given, in the 2008 – 2012 period, for car production, and 48.55 million lei for engine production.
The aid for the engine production is conditioned by investments of 494 million euro in this sector by made until 2012.
The state aid for the engine production will be given as of 2010 and is conditioned by investments of 181 million euro.
Moreover, Ford will not market any engine made in Craiova outside the group for five years after the date of finalization of investments.
The European Commission authorized, at end-April 2008, an aid of 143 million euro that the Romanian authorities intend to give Ford for car and engine production in Craiova, considering the respective measure is compatible with the stipulations of the Orientations on regional aid 2007-2013 and especially with the norms on big investment projects.
Ford pledged to double the number of employees in Craiova, from 3,900 at present to 7,000 – 9,000 and invest 1bn euro in Romania by 2011. The Ford officials announced 90% of the cars made in Craiova would be exported.
At end-August 2006, the Romanian state bought the 51% stake in Automobile Daewoo Craiova held by the Korean company Daewoo Motor Co, for 60 million dollars.