ISTANBUL — Ford Motor’s Turkish joint venture will buy Ford’s Craiova plant in Romania for 575 million euros ($630 million).
Ford Otosan was already expected to increase its annual production capacity from 455,000 to 650,000 with a 2 billion euro ($2.2 billion) investment plan, with production of the next Transit Custom van starting in next year with a version for Volkswagen.
Production will eventually reach 900,000 units per year with the addition of Craiova to the joint venture.
Ford will shift production of the new Transit Courier and Tourneo Courier vans to Craiova from Turkey in 2023, with all-electric versions coming in 2024. The Craiova plant currently produces Puma and EcoSport passenger cars.
Ford Otosan will likely finance the Craiova acquisition with bank loans, CEO Haydar Yenigun said Monday at a press conference. The transaction is expected to close in the third quarter pending regulatory review.
Ford also on Monday announced plans with Korean battery maker SK On and Koc Holding to form a joint venture to produce electric vehicle batteries in Turkey.
Bloomberg contributed to this report