Ford Romania is to use a loan from the European Investment Bank to help finance the development of a low-CO2 engine and vehicle production at its Craiova plant in Romania.
Ford Romania is to use a loan from the European Investment Bank (EIB) to help finance the development of a low-CO2 engine and vehicle production at its Craiova plant in Romania.
The 80 per cent loan and guarantee from the Romania goverment meets the conditions of the commission’s Temporary Framework for state-aid measures, which gives Member states access to financing in the present economic and financial crisis.
‘The Commission can authorise this state guarantee, which should contribute to Ford’s investment project for environmentally-friendly cars without giving rise to undue distortions of competition,’ said Neelie Kroes, competition commissioner.
Ford Romania is planning to use the EIB funds for its over €1bn (£0.9bn) project at the Craiova plant, which is part of a joint European venture to develop low-CO2 -emission engines and cars. The EIB is to lend a total of €600m (£541m) to Ford Europe for the development project, out of which €200m (£180m) will go to Ford Werke in Germany and €400m (£361m) to Ford Romania.
The loans and corresponding guarantees will be provided for five years, for the period 2009-2014, with a maturity of seven years.