“The signing of these documents completes the privatization process. Through its $1 billion investment, more than half of which into technical equipment, Ford has created a wide regional development framework and is a strategic partner in the area,” authority president Nicolae Minea said in a press release.
Ford took over state-owned Automobile Craiova in 2007, paying EUR57 million for a 72.4% stake. The U.S. giant undertook in the privatization contract to invest EUR675 million and reach an output of 250,000 cars by March 2012.
However, Ford failed to meet that target and asked to adjust its output. The company also had to pay a penalty of EUR14.25 million, 25% of the price of the shares it bought.
Early 2013, Ford sued Romania for EUR15 million in reparations. In October 2013, the government decided to make a compromise and not charge part of the penalties it claimed.