Ford To Use EIB Loan To Produce Eco-Friendly Car At Romanian Plant

Romanian and EIB officials signed a guarantee agreement for the loan in Bucharest Thursday. Under the agreement, Romania will guarantee 80% (or EUR320 million) of the loan. The guarantee is granted for a period of five years and the risk commission was set at 2% a year.

„We hope that by guaranteeing the loan we can further stimulate Ford’s plant in Craiova and the company’s investment in Romania,” Primer Minister Emil Boc said at the ceremony.

In his turn, Finance Minister Sebastian Vladescu expressed his hope that the EIB loan will allow Ford to manufacture 250,000 cars a year in under 18 months.

Ford became the main shareholder in the Craiova-based plant in 2007, after buying a 72.4% stake from the Romanian state for EUR57 million. Ford later increased its stake to over 90%.

The US carmaker has launched its first Transit Connect model assembled in Craiova in September last year.

Ford said at the time the second model to be produced in Craiova will be a small car. The company also announced plans to build a small displacement, advanced EcoBoost petrol engine. However, no production dates were given.

Ford plans to manufacture between 20,000 and 30,000 vehicles at the plant in Craiova in 2010.