The American car maker Ford plans to open a new production plant in the Eastern Europe and has eyed the Romanian Daewoo Craiova plant, according to the UK daily The Times.

Ford has only one production plant in the region, based in Russia. John Fleming, president of Ford Europe, showed his interest for the plant in Craiova as a quick step to boost low-cost production in the former Soviet bloc.

The plant in Craiova, southern Romania, was set up as a joint venture between the Korean Daewoo company and the Romanian government. It has the capacity to make 150,000 cars and 300,000 engines a year. Daewoo collapsed in 2000 and the Romanian government took over the plant in the beginning of September 2006.

Another potential client is the American car maker General Motors, also interested in the Romanian plant in the perspective of low cost production, and labour force.

The vice-president of the Daewoo Automobile Romania S.A. announced the plant’s plans regarding the next employment phase and the launching of a new model within the following two years, to keep itself on the market. The next 6 months turnover amounts to 260 million dollars.