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Tuesday, 29 November 2011

Romania: Ford face fine for underproduction

At first sight, it could be a throwback to the era of centrally-planned economies: why on earth might the authorities in Romania be threatening to fine Ford for not making enough cars at its plant at Craiova?

The answer, as Bloomberg (along with several other websites) reports, is that the manufacturer received state aid to set up the factory in the first place, and the production targets form part of the agreement supporting the financial help. 250,000 was the contractual volume this year, and going by the reports Ford haven't missed it very narrowly - so far they have manufactured only 7,600 units. €14 million is the fine being mooted, even though Romania isn't yet in the Eurozone (and might be wondering whether it really wants to join next year, as it plans).

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