Ford is in the midst of a major electrification push, one that involves a number of major changes for the automaker. In Europe, that includes adding seven new EVs to FoMoCo’s lineup – including the Puma EV – as it aims to transition its entire European passenger vehicle lineup to EVs by 2030 or sooner. As part of that transformation, Ford Otosan – a joint venture equally owned by Ford Motor Company and Koc Holding – recently announced that it intended to assume ownership of the Craiova Assembly plant in Romania, where the Puma EV and a pair of new Transit models will be built, pending regulatory approval. Now, that’s precisely what has happened after the European Commission (EC) approved Ford Otosan’s acquisition of Ford Romania, according to SeeNews.
The EC determined that there was no competitive concern with the acquisition, as there are no overlaps between the activities of either company, and it also ruled that the two companies are not active on related markets in the European Economic Area. The transaction is now expected to be finalized by the third quarter of this year. Ford Otosan – one of the longest-running and most successful joint ventures in the global auto industry – was established in its current form back in 1977.
The move is intended to allow Ford Otosan to expand its international footprint in terms of vehicle production, while also further supporting Ford’s electrification plans and recent decision to split its business into two distinct entities – Model e for EVs and Ford Blue for ICE-powered vehicles.
The Craiova plant will begin producing the Puma EV in 2024, with the the next-generation Transit Courier van and Tourneo Courier multi-purpose vehicle preceding it in 2023. A fully-electric version of that same van is scheduled to join those new models in 2024, too.
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I don’t have a MBA (probably a good thing) but I don’t understand the logic of a firm (where you own 50-percent) buying a plant you already own 100-percent. There’s probably tax implications, but…