Ford wants a second look to some clauses in the Automobile Craiova privatisation contract

Miercuri, 5 mai 2010, 17:21 English | Business

Ford requested AVAS to reassess certain clauses in the selling - buying contract for Automobile Craiova shares. The next step aims for a Governmental Decision to create a Commission to negotiate with Ford the changes, a decisional project published by AVAS website shows. Ford started to produce with the plant in Oltenia (South Romania) last autumn. So far, its production counts below 1,000 Transit Connect utility cars. The government approved on May 5 the Decision to form a commission in order to reassess the privatisation contract. The commission will be formed by AVAS and Finance Ministry representatives. The reason for this second look on clauses has not been discussed. Ford claims that it will keep its arrangements, but it did not declare what the company was planning to renegotiate, despite HotNews insisting on it.

"In the context of the economic and financial global crisis that has dramatically affected the economies in the most developed countries, with dramatic effects on the auto producers industry market worldwide, Ford requested the reassessment of some clauses in the shares selling-buying contract", the decision Project reads. According to this, there's a need for an inter-ministerial commission, made up by representatives from The Authority for State Asset recovery (AVAS), the Public Finance Ministry, Economy Ministry, Work Ministry and the Government's General Secretariat.

During the first meeting of the commission, Ford will present proposals to modify the privatisation contract, negotiating these proposals with the state representatives. "The results will be approved by Romania's Government through a Memorandum, will be sent for authorisation to the European Commission and later, they will be subjected to Romania's Government approval as ordinance/law", the decision project mentions.

The commission will be headed by the AVAS president. Ford produced below 1,000 cars since September 2009, when the company started working on Transit Connect in Craiova. The production is low because the plant is still developing to introduce a new model towards the end of this year. Plus, the demand for commercial car has dropped in the economic crisis.