During a ceremony at the former Automobile Craiova vehicle manufacturing complex in Romania, Ford became the majority owner of the plant.

The documents completing the sale were signed by the chief negotiators for each side – Mr. Sebastian Vladescu, President of the privatisation committee for Automobile Craiova and Mr. Lyle Watters, Director of Business Strategy, Ford of Europe.

Traian Basescu, President of Romania, Calin Popescu-Tariceanu, Prime Minister of Romania and John Fleming, President and CEO, Ford of Europe were in Craiova to witness the ceremony.

"I am extremely proud to be able to welcome Ford Craiova into the global Ford family," John Fleming told a gathering of the company's newest workers.

"This facility joins seven other Ford vehicle assembly plants and thirteen engine, transmission, casting, forging, stamping, tool and die plants (including joint ventures) across Europe. All are characterised by world-class standards of manufacturing quality and efficiency. We are committed to transforming Craiova into a state-of-the-art manufacturing plant through an investment of 675 million Euros."

The first Ford vehicle produced at Craiova is expected to appear on the market sometime around the middle of 2009. According to Flemming, the vehicle produced at Craiova will be Transit Connect.

He said that a second vehicle would begin production at the plant in 2010. "Our first Romanian car will be unique to Craiova. It will be a small car – not the new Fiesta - and will be for sale in all our European markets. For reasons of commercial confidentiality I am not prepared to say any more at this stage."

Ford has reached agreement with the existing major OEM customer of the plant to continue production of completed cars, engines and transmissions through to, at least, the end of 2008. In addition, Ford has committed to honour all its legal obligations in Romania regarding the manufacture of spare parts for those vehicles previously built at the plant and still in service.