With Ford Motor Corp being the only
auto maker who had submitted a bid for
a majority stake in Daewoo Automobile
Craiova, Romania is planning to
wrap up the sale of Daewoo Craiova by
September 1, 2007.
Reports quoting privatization
officials of Romania that the
privatizations process would hopefully
be completed by September 1, 2007. The
car maker's sale committee, which did
not open Ford's financial bid, said
all required documents have been
submitted and that negotiations for an
improved offer will begin on July 16,
Romania wants to sell a 72.4 per cent
stake in Daewoo Automobile Craiova.
The government bought back the
troubled car maker from its bankrupt
owner, Daewoo Motor, in late 2006 for
$51 million and paid another $10
million for debts stemming from past
loans secured by the Korean company.
The country had earlier announced that
it had received letters of intent from
General Motors Corp, Russian Machines,
and also Ford Motor Corp.
Meanwhile, a number of auto parts
providers have set up shop in the new
European Union member recently. This
is due to the rising output of the
Renault's Dacia plant, cheap labor,
and favorable tax rates. However, a
major shakeout may take place after a
possible takeover of Daewoo Automobile
Craiova by Ford.
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