Ford will start building advanced, low capacity car engines in Craiova, South Romania starting late 2010 and will take production cut measures in Europe to align it with market demand, the company announced. Car production will start this year in Romania with the Transit Connect model.

In Craiova and in Koln, Ford will produce an advanced EcoBoost low capacity engine running on gasoline. Plus, it will start production of a new version of the Ford EcoBoost engine in Valencia, Spain this year. Ford may adapt production at its plants in Romania, Germany and Spain to de unprecedented decline of the European car market and negative economic forecasts, according to the producer, quoted by AFP.

Ford Europe CEO John Fleming declared that Ford is compelled to cut costs and secure its production plans in order to sustain itself as a successful business in the future. He declared that supplementary measures needed to be taken in order to cope with the changing environment.

The first model to be produced by Ford in Romania will be the Transit Connect model, and in 2010 Ford Craiova will start working at a new small class car but did not mention which one. Then, in 2011-2012 Ford will produce in Craiova a medium class commercial vehicle like Transit even though officials avoided to point any models.

Therefore, Ford will invest some 1.2 billion euro for its project in Romania and asked for a 600 million euro loan from the European Investment Bank.