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Bucharest
June 13, 2021
BUSINESS

Romanian state blocks subventions allotted to Ford

The Romanian state blocked the subventions to Ford, arguing that the sums invested by the American car-maker in the Craiova plant are lower than was initially promised, “Gazeta de Sud” reports.

Ford Romania should receive a total EUR 143 M as regional state aid from the Romanian state, provided it makes total investments of EUR 675 M in the Craiova car factory by 2012, according to the aforementioned source. Firstly, the state argues Ford was under “the obligation” to make investments in the Craiova plant: “According to the aforementioned piece of legislation (Appendix 1 to OUG no. 109/2008), SC Ford Romania SA is under the obligation to make these investments in Craiova by 2012 (…)”. Secondly, the Public Finance Ministry (MFP) reckons the car-manufacturer is way behind the investment schedule. Nonetheless, the Romanian administration does not state, clearly, whether the funds promised to the American company will be paid or not, leaving the path open to dialogue, arguing the documents filed by Ford are being analyzed.

Ford officials refused to comment on the topic, invoking confidentiality clauses.

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