By rbj
Ford Otosan, the largest commercial vehicle manufacturer in Europe, will take ownership of the Craiova plant and production activity in Romania. The amount paid is 575 million euros, to which is added an amount of 140 million euros which will be accessed depending on the fulfillment of the contractual conditions.
“This transfer shows how Ford leverages its strategic partnerships to make the most efficient use of existing resources through joint investment while benefiting from Ford Otosan’s extensive experience. We welcome this opportunity to strengthen our partnership with Koç Holdings through Ford Otosan and to develop this joint venture together. The activity of the factory in Craiova is a success and we consider that through the experience and expertise of Ford Otosan in electrification and commercial vehicles it can reach an even higher level of development “, said Stuart Rowley, President of Ford of Europe.
Today’s announcement opens a new chapter in Ford Otosan’s success story and allows the Craiova plant to play a major role in the future of this joint venture while supporting Ford’s solid electrification plans (Model e) and commercial vehicles (Ford Pro). At the same time, this allows Ford Otosan to expand its international footprint in terms of vehicle production and experience in this field.
“This very important agreement we have reached today will strengthen Ford Otosan’s position as the largest commercial vehicle manufacturer in Europe. We are proud to be part of the Ford team that maintains supremacy in the European commercial vehicle market. At the same time, we are committed to being the reliable partner for the future success of Ford Electrified Vehicles. We believe that the launches of future models, together with the growth and technological plans, will offer exponential and interesting opportunities for the Craiova team. Moreover, we are confident that together we will build the future of the Craiova plant “, said Haydar Yenigun, general manager of Ford Otosan.
At the same time, Ford announces that the Puma model, which in 2021 was the best-selling Ford car in Europe, will receive a fully electric version from 2024, which will be manufactured at the Craiova plant.
Last year, Ford confirmed that starting with 2023, a new light commercial vehicle will be produced in Craiova, which from 2024 will also exist in the fully electric version. Today, the company announces that this vehicle will be the next generation Transit Courier. In addition, a compact multifunctional vehicle – Tourneo Courier – will also be produced in Craiova in 2023, with a fully electric version to be launched in production in 2024.
“Today’s announcement supports Ford’s vision for expanding our range of cars, with the Craiova plant playing a key role in our solid plans to develop commercial (Ford Pro) and electric (Model e) vehicles in Europe,” he said. Stuart Rowley, President of Ford of Europe.
Through the transfer of ownership, the Craiova plant will benefit from a wide network of skills and know-how transfer through the vast experience of the Ford Otosan team in the design, development, and construction of commercial and electric vehicles.
Ford Otosan’s experience with electric propulsion systems by manufacturing the two-tonne E-Transit in Kocaeli, Turkey, which will go on sale this quarter and the next-generation all-electric Transit Custom, for sale in 2023, will be used to ensure the best possible transition to the electric future of the Craiova plant.
The fact that Ford Otosan will be the new owner of the factory in Craiova will help the transfer of know-how, through the vertical integration of electrical technologies and will have an extensive and cost-effective effect on the network of suppliers.
Ford also announces that the production of the Ford EcoSport small class SUV will end by the end of this year, as the Craiova plant will focus more and more on a future built on the production of commercial and electric vehicles.
Ford has started a process of information and consultation with the social partners in Craiova, regarding the transfer of ownership.
Ford and Ford Otosan hope that the transfer of ownership announced today will be completed in the third quarter of 2022, subject to the approval of the relevant authorities and following consultations.
At the same time, Ford’s National Sales Company in Romania, as well as other departments serving Ford at the European level, will continue to operate in the same way as before, remaining part of the Ford of Europe structure.
