Ford Romania Must Step Up Production To Avoid Penalties

Ford Motor Co. bought the Romanian auto assembly plant back in 2007. Under the deal, the US carmaker pledged to pay the authorities up to 25% of the purchase price unless it steps up production to over a quarter million units within four years since the privatization.

The penalty drops to 10% of the purchase price if Ford manufactures between 200,000 and 225,000 units by deadline and further to 5% of the purchase price if the total production reaches between 225,000 and 250,000 units.

So far, Ford assembled at its plant in Craiova only 400 cars, which means the company should increase production 625 times in the remaining year and a half to avoid paying penalties.

Ford Romania's officials declined to comment on whether they will be able to reach the agreed production level by 2011.

The U.S. carmaker currently assembles its Transit Connect model in Craiova. It will start production of the B-Max small-class model in 2010.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.