Seeking an IMF rescue, Romania will aid Ford

Ailing U.S. car maker Ford Motor Co. will receive 143 million euros ($232 million Canadian) in aid from the government of Romania, where the company owns an assembly plant, lawmakers said

The state aid, spanning until 2012, will support production of cars and engines at the factory in Craiova, in southern Romania.

The country is in talks with the European Union and the International Monetary for aid to support its economy against the impact of the global financial crisis.

In 2007, Ford bought a 72.4 per cent stake in the state-owned Automobile Craiova, paying $88 million (U.S.) and vowing to invest $1 billion to upgrade and expand car production.

At the time, Ford said the first vehicles would come out of the factory in 2009. The plans presented by Ford included a production increase from 16,000 in 2009 to 300,000 within four years.

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