EC investigation to affect Ford acquisition in Romania

The EC investigation regarding the privatization process of the Craiova Automobile plant might postpone Ford plans to produce a new small class car model in Romania, Ford spokesperson Tom Malcolm has declared, Romanian news agency NewsIn reports.

Malcolm said that depending upon the length of the investigation the company would put forward a new production plan.

Ford general director for Europe, John Fleming had previously announced in Frankfurt that his group planned start the production of a new car model in the Romanian factory by the end of 2008.

European officials initiated an extensive investigation to analyze the privatization process of the Romanian factory in October. According to the EC, Romania imposed some conditions to the privatization process such as, among others, the production of at least 200,000 cars in Romania after four years.

The European Commission has not yet established a date when the analysis will end.

American Ford company decided to pay Romania 57 million euro for a 72.4% stake in the factory and promised investments amounting to some 675 million euro to modernize the factory.