Ford to sell Romanian plant to Turkish JV (updated)

Ford Otomotiv Sanayi AS

14/03/2022 11:07

(Adds Ford Otosan CEO comments, detail)
    ISTANBUL, March 14 (Reuters) - Ford Motor Co's  F.N  Turkish
joint venture will buy the U.S. company's Craiova plant in
Romania for 575 million euros ($630 million) and plans to move
Courier van production there, the company said on Monday.
    Ford Otosan  FROTO.IS , the joint venture with Turkey's Koc
Holding  KCHOL , will pay an additional 140 million euros to
Ford over the next decade according to certain capacity
utilisation criteria, the company said.
    Ford Otosan shares jumped 8.5% to 264.7 liras in response.
    The Romanian plant produces Puma and EcoSport passenger
models. It will begin production of the Courier along with Puma
next year, with battery electric versions of both rolling off in
2024.
    Ford Otosan, which is undergoing a 2 billion-euro expansion
of its Turkish plant, will likely finance the acquisition with
bank loans, CEO Haydar Yenigun told a press conference. It plans
to keep paying dividends.
    The transaction is expected to be completed in the third
quarter pending a regulatory review.
    Ford Otosan plans to begin manufacturing Europe's top
selling van Transit's electrical and hybrid versions in Turkey
next year.    
    Ford also announced plans, together with Korean battery
maker SK On and Koc Holding, to form a joint venture to produce
electric vehicle batteries in Turkey.  urn:newsml:reuters.com:*:nL3N2VH178
    ($1 = 0.9125 euros)

 (Reporting by Can Sezer; Editing by Jonathan Spicer and Barbara
Lewis)
 ((can.sezer@tr.com; +90-212-350 7055; Reuters Messaging:
can.sezer.thomsonreuters.com@reuters.net))