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Timeline of a confirmation

Listed in chronological order, the takeover of Dacia by Groupe Renault and the arrival of Ford in Romania through the takeover of the Craiova plant are, in my opinion, among the best things that have happened in this country since the 1989 revolution.

Dacia is already the strongest link in the Renault group, but Craiova is a place that seems to get our heart rate a little off. Is that really the case?

Ford entered the Romanian scene sometime in 2007, when it made a bid for Automobile Craiova, and in March 2008 it received the Oltenian passport by taking over the plant. A natural process of upgrading the Craiova platform followed, and production started on 8 September 2009. A first step in the consolidation of the Craiova plant was the production of the Ford B-Max, an MPV that was born a little too early to be successful. Looking at the automotive landscape now, the B-Max would have been a perfect candidate for electrification and urban mobility. Production of the EcoSport began in 2017, and as of 2019, one of the most successful models in the manufacturer’s current range – the Ford Puma – is being produced in Craiova. Craiova also produces the much-awarded 1.0 EcoBoost powertrain.

But on March 14, 2022, came an announcement that caused some disbelief. Ford announced the transfer of ownership of the Craiova plant to its partner Ford Otosan.

“This arrangement shows how Ford is leveraging our strategic partnerships to better utilize our resources by sharing investments and benefitting from a wider pool of expertise. We welcome this opportunity to deepen our partnership with Koç Holdings in Ford Otosan, and to grow our mutual joint venture. Craiova is today a strong success story, but we believe that through Ford Otosan’s experience and expertise in electrification and commercial vehicles it can reach even higher levels of achievement,” said Stuart Rowley, chair, Ford of Europe.

At the time, the plans looked something like this:

– Ford Puma gets an all-electric version from 2024, to be built in Craiova

– A new light commercial vehicle will go into production in 2023 in Craiova and will have a fully electric version from 2024 (next generation Ford Transit Courier)

– Tourneo Courier compact multi-purpose vehicle also to be built in Craiova from 2023, with an all-electric version in 2024

– Production of Ford EcoSport will end by the end of 2022.

“This milestone agreement we have reached today will strengthen Ford Otosan’s position as the largest commercial vehicle producer in Europe. We are proud to be part of Ford’s ongoing commercial vehicle leadership and committed to be the trusted partner for its future success with electrified vehicles at its center. We believe future product, growth and technology plans will provide incremental and exciting opportunities for the Craiova team. Moreover, we are confident that we will build the future of Craiova together,” said Haydar Yenigun, general manager, Ford Otosan.

On July 1, 2022, Ford Craiova becomes Ford Otosan Craiova, with the transfer of ownership completed. Ford Otosan announces investments of €490 million at the Craiova plant.

In the context of ownership transfer from Craiova, a new company has been created – Ford Romania Services SRL- which integrates the sales and marketing activities of Ford in Romania (National Sales Company) and Ford Business Solutions Centre (FBS). Also, some additional European functions such as Purchasing and Accounting operating from Craiova will also run their activity under Ford Romania Services company.

Looking back, these developments could easily have been anticipated as early as April 2021, when Ford announced a $300 million investment in Craiova to produce a new light commercial vehicle in 2023, which will get an electric version in 2024. At that time, it was stated that the Craiova plant follows the line of Ford Cologne Electrified Vehicle Center in Germany and Ford Otosan’s Kocaeli plant in Turkey, which will produce fully electric vehicles.

On another note, Stuart Rowley, President of Ford of Europe, elegantly stated, “This new planned investment in Craiova’s future is a sign of Ford’s hope that the Romanian government will ensure key improvements are delivered to support a competitive manufacturing landscape in the local region, including much needed upgrades to the transport infrastructure.”

In April 2023 management changes are announced at Ford Otosan Romania.

Müjdat Tiryaki, who has served as Director of Ford Otosan Craiova since August 2022, is named President of Ford Otosan Craiova from the May 1, 2023, following the appointment of Josephine Payne as Deputy Managing Director of Ford Otosan.

The first sign that things are moving in the right direction at Craiova came in May this year, when Ford Otosan announced the creation of 1,300 new jobs. The new jobs are needed to support the future development of Ford Otosan production in Craiova, where production capacity will increase from 250,000 vehicles per year to 272,000 vehicles per year.

“With the addition of the 1,300 jobs, we will reach approximately 6,500 employees at our Craiova manufacturing site which will further ensure us working in three operating shifts later this year. Since the taking over, Ford Otosan has been hiring new talents to support ambitious targets of the company in parallel with our growth plans, but this is our first major hiring campaign, and our aim is to not only recruit from Craiova city but to also extend our search in neighbouring vicinities while we continue to work very closely with the local employment authorities,” stated Mujdat Tiryaki, the President of Ford Otosan Craiova.

And a week later, Ford presents the E-Tourneo Courier, an all-electric, practical and spacious model to be produced at Ford’s Otosan plant in Craiova.

The E-Tourneo Courier will be produced in Craiova from the second half of 2024, alongside the Puma crossover – Ford’s best-selling passenger car in Europe, will will benefit in 2024 of an all-electric version.

The new Tourneo Courier, with its 125 hp 1.0-litre EcoBoost turbocharged petrol engine, goes into production in 2023.

All the while, Ford remains heavily involved in the local community. Ford’s Resource and Engagement Center supports eight new social entrepreneurship programs to assist the Craiova community.

CRAF (Ford Resource and Engagement Centre) acts as a hub for social entrepreneurship, is operated by the non-profit partner entity Association for Education SV Oltenia (EDUCOL) and is based in premises provided by Craiova City Hall.

The Ford Motor Company Fund, in collaboration with its international partner, GlobalGiving, confirms continued support for CRAF over the next four years.

These are so far the ingredients of a confirmation. Cars will continue to be produced in Craiova, and they too will bear the Ford logo.

Constantin Ciobanu

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