Ford kicks off car production in Craiova plant

US carmaker Ford has started production today in Craiova, Dolj County, after investing EUR 500 million to modernize and upgrade the car plant in southern Romania, some 230 km from Bucharest. Moreover, the company will produce a second engine locally starting 2013.

The first car to be built at Craiova is the multi-activity vehicle Ford B-MAX, which will be equipped with the 1.0 liter EcoBoost engine that is also produced locally.

“I believe the project will be a success and as you can prove your belief only through deeds, I want to tell you I want to be the first one that buys the first car manufactured by Ford,” said President Basescu, quoted by Agerpres newswire. The president got behind the wheel of a red B-MAX.

Ford announced today it will build a second engine at Craiova, a 1.5 petrol engine, that will go into production in early 2013. The company began this May to produce a 1.0 petrol engine, following an investment of EUR 180 million in the modernization and upgrade of the Craiova engine plant.

“Volume vehicle and engine production at Craiova brings a new level of sophisticated manufacturing to Eastern Europe,” said John Fleming, executive vice president, Global Manufacturing and Labor Affairs, Ford Motor Company. “Craiova is today one of the most competitive and modern production sites in Ford’s global manufacturing footprint and, indeed, in the global auto industry as a whole, with cutting-edge facilities like its class-leading paint shop.”

Ford plans to manufacture 60,000 units this year, increasing output to 100,000 cars next year. The production began two year’s behind the initial plan. In fact, Ford was fined EUR 14.2 million this March for low production in Craiova. In addition, the state aid granted to Ford was cut to EUR 75 million for failing to meet the targets set in the privatization program.

Ford Motor Company acquired in 2008 the Automobile Craiova plant after buying a majority stake in Automobile Craiova from the state in 2007. According to the updated privatization contract, Ford will produce 810,000 cars and 1.5 million engines between 2012 and 2017 in Craiova.