Ford Starts Production in Romania

Ford Motor Co. ( F - Analyst Report ) has announced the initiation of the production of vehicles at its new manufacturing facility in Craiova, Romania. The Ford B-MAX will be produced in the plant along with 1.5-litre petrol second engine. The volume production of the second engine will start with the onset of next year.

The Craiova plant in Romania will be developing two advanced products - the Ford B-MAX and the 2012 International Engine. Ford has invested around €675 million ($875 million) for the engine and vehicle production in the plant including €500 million (nearly $650 million) investment for the new vehicle production.

Ford B-MAX is the new innovative B-segment vehicle of the company. It is the class leading in fuel efficiency and CO2 emissions standards for both diesel and petrol engines. It will be sold in the European markets by the end of this year.

The Ford B-MAX featuring 1.0-litre EcoBoost engine comes with both the 100PS and 120PS versions. Both versions will be manufactured in the Craiova plant.

Ford B-MAX is the technologically advanced small car of the company. Active City Stop technology is featured in the vehicle, which will automatically apply the brakes sensing low-speed collision. The car is also equipped with Ford SYNC with emergency assistance.

Michigan-based Ford Motor is one of the largest automobile producers worldwide. The company is divided into two segments: Automotive and Financial services. Its core and affiliated automotive brands include Ford, Lincoln, and Mercury. Although U.S. is Ford’s primary selling ground, Europe, South America, and the Asia-Pacific constitute its other major markets. Ford competes with General Motors Company ( GM - Analyst Report ) and Toyota Motor Corporation ( TM - Analyst Report )

Currently, Ford Motor retains a Zacks #4 Rank, which translates into a short-term (1 to 3 months) “Sell” rating. We have a long-term (more than 6 months) “Underperform” recommendation on the stock.