The Sunday Times
September 10,
2006
Car giants
eye Romanian plant
Ray Hutton
FORD hopes to set up a new
manufacturing base in eastern Europe with a bid to take over the former Daewoo
factory in Romania.
It is vying with General Motors to take control of
the plant, which is owned by the Romanian government and has capacity to make
150,000 cars and 300,000 engines a year.
Automotive analysts say the
contest underlines the eagerness of the two manufacturers both of which are
making heavy losses to boost low-cost production in the former Soviet bloc,
and presents a possible threat to existing car plants in western
Europe.
The plant, in Craiova, southern Romania, was set up as a joint
venture between the Korean conglomerate and the Romanian government. Daewoo
collapsed in 2000.
After a long period of negotiations with creditors,
the government paid $60m (£32m) to take complete ownership of the plant. It
still produces obsolete Daewoo models.
GM took control of the Daewoo car
business in 2001 but not most of its widespread overseas
subsidiaries.
Eastern Europe is rapidly becoming a favoured production
base for big car companies. The Korean groups Hyundai and Kia are setting up
European plants, respectively in the Czech Republic and
Slovakia.
Yong-Hwan Kim, Kias chief of international business, told The
Sunday Times that its labour cost in Slovakia was one-fifth of that in
Korea.
Ford has only a plant in Russia. John Fleming, president and chief
executive of Ford of Europe, said last week it was keen to have another in the
region and the Daewoo factory would enable a quick start-up.
The
government in Bucharest is expected to choose between the American companies
bids early in the new year.
Meanwhile, Alan Mulally, the Boeing veteran
who was appointed chief executive of Ford last week, faces a big test this week
with the presentation of a restructuring plan to the companys board of
directors. The plan is a revision of the Way Ahead blueprint unveiled by
chairman Bill Ford Jr in January.
It is likely to include an acceleration
of plant closures and job cuts in North America, but it is not clear whether it
will include a decision on Jaguar and Land Rover, two of Fords UK subsidiaries.
Aston Martin is already being considered for sale.
Copyright 2006 Times Newspapers
Ltd.
----------------------------
Vali
An aristocratic
title is not enough to ensure a noble behaviour. A person's greatness
comes from acknowledging the mistakes and agreeing to correct them.
"When
the power of love overcomes the love of power, the world will know peace." (Jimi
Hendrix)
*** sustineti [romania_eu_list] prin 2% din impozitul pe 2005 - detalii la http://www.doilasuta.ro ***
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