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Ford Delays Decision on Second Car for Romania Plant

Executive Summary

The auto maker says it is limiting production at the Romanian facility to one model because of the ongoing economic uncertainty in the eurozone.

VIENNA – The new Ford B-Max multipurpose vehicle manufactured since June at the Ford Romania plant in Craiova, Romania, will remain the factory’s only model, at least for a while.

“We will stay with one vehicle model in the 100,000- to 150,000-volume range for the foreseeable future,” Wolfgang G. Schneider, Ford of Europe vice president-governmental, environmental and legal affairs, tells WardsAuto. “And that will be the B-Max.”

The executive says plans call for production of 40,000 to 60,000 B-Max units this year. “Next year, the facility is scheduled to go to 100,000,” Schneider says.

The auto maker at first was going to produce a second model in addition to the B-Max in Craiova. “That was the original plan. But we decided to build just one car due to the uncertain situation at the moment,” Schneider says of ongoing economic upheaval in the eurozone.

The capacity was installed in anticipation of a second car, with annual production totaling 300,000 units. Ford expects B-Max output to use about half that.

Consideration is being given to a second model. But, Schneider says: “No decision has yet been made on whether there will be a second car, (or) on what it will be. The decision will not be made before 2014-2015.”

If a second Ford model is to be manufactured in Romania, it “will certainly be a small car, that is, a car on a small platform,” the executive adds.

In contrast to car production, Ford expects its engine plant in Craiova to reach its annual capacity of 300,000 units in 2014. The Romanian facility launched volume production of the new 1.0L 3-cyl. EcoBoost gasoline engine this spring. Plans call for the manufacture of 60,000 units this year.

“We envision 100,000, perhaps even 150,000 (units) next year,” Schneider says. “A year later, we want to already be at 300,000 engines.”

Production of a 1.5L Sigma gasoline engine launches in Craiova in early 2013. But Ford considers the 1.0L EcoBoost the facility’s main product. The auto maker calculates the plant eventually will reach the 300,000-unit mark with just the 1.0L powerplant.

“The two engines will run in parallel at Craiova, but we don't yet know whether the Sigma engine will stay in Craiova forever,” Schneider says. “That depends on how successful the 1.0L engine is. If it is very successful, we will use the full capacity for it. If not, we will build two engines.”

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