Ford Faces Massive Fine from Romania’s Government

Negotiations are under way between Ford Automobiles in Romania and the country’s government regarding a possible breach of contract from the car producer. The latter purchased, in 2007, a car plant in Craiova, Romania, and committed to produce 250.000 units in 2011. So far, according to Mediafax, Ford Romania has only produced 3000 vehicles in the first four months of 2011, which brings the factory’s output to an average of 750 cars per month. According to the privatisation contract, failure to produce the amount of cars mentioned in the contract bears a fine of 14 million Euros (approximately 20 million US Dollars). The car manufacturer has been negotiating in the past 10 months a postponement of one year of the obligation to produce the 250.000 vehicles.

“The talks between Ford and the Romanian state have seen progress and we are confident that the additional document to the privatisation contract will be signed in due time. We will return with more details when the time is right”, said Hans Juergen Fuchs, spokesperson for Ford Europe, quoted by ZF.

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