Ford Romania set to defy the crisis through continuing the EUR 675m investment plan

American car maker Ford will not give in to the financial crisis and will stick to the plan of investing 675 million euros in revamping its newly purchased factory in Romania, announced company officials today.

Ford recently took over the Daewoo factory in Craiova, paying the Romanian government 57 million euros for 72.4 percent of the shares. Production is scheduled to begin in 2009.

While the first vehicle heralded for the middle of next year is Ford Transit Connect, it is hoped that 2010 will see a new small category model, only manufactured in Craiova.

The American company estimates that by 2012, it will produce 300,000 vehicles and as many engines every year, with adjoining expenditures to climb to 1 billion euros. The number of employees should also increase gradually from 3,900 to 7,000.

Ford Europe addresses 51 markets, including Turkey and Russia.

Ford Motor Co. announced on November 7 that it is seriously affected by the financial crisis, having lost 2.98 billion U.S. dollars in the third quarter. Net losses decreased from 380 million dollars in the third quarter last year to 129 million dollars. Car sales in the United States reached in October the deepest whole of the last 25 years.

Ford stated at the end of September it would diminish the production of its sole factory in Great Britain and of other European factories because of the ebbing sales.