Ford of Europe receives 600 million euros in loans
By Andrew C., 30 Aug, 2010. 0 Comments
With the recent approval of 600 million euros in loans, Ford of Europe will proceed with expanding its car assembly plant in Craiova, Romania, and boosting r&d in Germany.
The European Investment Bank (EIB), the financing arm of the 27-member EU, aims to help finance investments to start production of a new B-segment vehicle in Craiova in the near future by providing 400 million euros. With this investment, a new model has also been scheduled to be launched there later. In March 2008, Ford bought the former Daewoo manufacturing plant in southwestern Romania and builds the Transit Connect in the plant. Continued after the jump!
The EIB loan will help launch the production of a new small, advanced-technology gasoline engine with low fuel consumption at the factory. Ford has a target to expand production at the Craiova factory to an annual output of up to 300,000 vehicles and 300,000 engines.
Wolfgang Schneider, Ford of Europe's head of governmental and legal affairs, said that the loan will help to transform the Craiova plant into a "world-class manufacturing facility for vehicles and engines."
In addition, the EIB revealed that it has approved a loan of 200 million euros for research, development and innovation, at Ford facilities in Germany. These loans are part of the EU's financial measures to help automotive companies gain access to financing during the economic and financial crisis. The Romanian government is providing a state guarantee for 80% of the loan.
[via just-auto - sub. required]
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