By the end of last year, Ford Romania was due to receive EUR65.55 million in aid, but the sum could be disbursed only provided that the company abided by the contract and invested EUR422 million in Craiova. As a result, payments have been blocked by the Finance Ministry.
This is the first time since the privatization contract was signed that the ministry provides precise data on Ford’s investment plans for Craiova.
As the state releases the aid in line with operated investments, the data revealed that Ford Motor Company invested only 27% of the sum pledged in September 2007, namely EUR114 million of EUR422 million, until the end of last year. Ford Romania officials made no statement on the investment plan.
Until now, according to the contract published on the official website of the privatization agency AVAS, only the total value of investments due for completion in 2012 was known, EUR675 million.
The next tranches of the EUR143 million aid will be disbursed only after all documents are analyzed and all clarifications requested by the Finance Ministry are received. Then, a decision will be made on the procedures to be used to answer Ford Romania’s applications for state aid. As for the value of investments operated in Craiova, neither the Finance Ministry, nor Ford Romania made any comment.
Through the privatization program signed in September 2007, Ford pledged to manufacture 250,000 cars in Craiova this year, a target impossible to reach considering only 4,700 cars were produced in the first six months of the year.
Aside from having its aid blocked, the U.S. carmaker may be fined over EUR14 million by the state, for failing to deliver the production stipulated in the privatization contract: 250,000 cars by 2011.
(English version by Catalina Apostoiu; Editing by Radu Bostan)