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ARO Campulung privatization unprofitable for Romania

de     HotNews.ro
Joi, 18 mai 2006, 0:00


The privatization of the Romanian SUV-maker ARO Campulung was unprofitable for the Romanian state, a report by a Senate commission concluded. The debts of the Romanian company doubled following its purchase by the American car maker company Cross Lander Inc which sold the Aro assets at undervalued prices.

The ARO patrimony valued at over 50 mln US dollars was sold at 150,230 USD. The Cross Lander also got rid off the ARO matrix and equipment factory for 2.7 mln USD, the report writes. The report accuses Cross Lander of breaking some clauses of the contract regarding the investments, the estimated turnover, the environment protection and the ban of selling the assets.

In December 2003 when the Romanian car maker was privatized, the company’s debts amounted to 10.12 bln USD but in December 2005, following the purchase by the Cross Lander, the debts grew to 24 bln USD and the losses to 14 bln USD from 10 bln USD.

Due to the delay in payments for the employees the activity is blocked since September 2005. In January 2005 the creditors filed for bankruptcy. The judicial procedure is under way.

The report requested the Government to grant financial aid for the ARO employees, considered to be”innocent victims of a fraudulent privatization”.

The privatization of ARO Campulung is under investigation by Romanian authorities.
























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