Koc Holding’s automotive subsidiary Ford Otosan has agreed to acquire its main partner Ford Motor Company’s Craiova manufacturing plant in Romania. As part of the deal, Ford Otosan will pay EUR 575m between 2022 and 2028 for all shares of Ford Romania. An additional payment of up to EUR 140m will be on the table in line with the capacity utilization rate of the Craiova manufacturing plant estimated for 2028-2034.
“With this investment, we will continue to work on advanced technologies that will provide a global competitive advantage while we increase the contribution to our economy,” said Ali Y. Koc, Chairman of the Board of Directors of Ford Otosan and Vice-Chair of the Board of Directors of Koc Holding.
Apart from the production of Ford Puma, its electric version, and 1.0-liter EcoBoost engines, the New Generation Courier model and its fully electric version, designed and engineered completely by Ford Otosan, will be manufactured at the Craiova production plant.
“Our operation in Craiova will reach higher success with Ford Otosan’s specialization and experience, especially in commercial vehicles and electric vehicles,” said Stuart Rowley, President of Ford Europe.
Ford Otosan will have an annual production capacity of more than 900,000 vehicles in total and its employment will exceed 20,000 people with the Craiova manufacturing plant, which has a total installed capacity of 250,000 vehicles per year.
“The overseas production responsibility that comes with this agreement will strengthen our position to become the largest commercial vehicle production base in Europe,” said Haydar Yenigun, General Manager of Ford Otosan.
Leave a Reply