Oltena

Automobile Craiova, officially S.C. Automobile Craiova S.A. and commonly associated with the Oltena name, was a Romanian automotive company based in Craiova. Its industrial origins lay in a 1976 joint venture between the Romanian state and Citroën, established to manufacture passenger cars for Romania and export markets. The factory initially produced vehicles under the Oltcit and Citroën names, most notably the Oltcit Club, a small hatchback derived from Citroën technology and later marketed in some contexts as the Citroën Axel. The corporate structure changed after Citroën withdrew from the venture. In 1991, the Romanian state took over Citroën's interest and renamed the company Automobile Craiova. Vehicle production continued under the Oltena brand, with the earlier Oltcit-derived cars remaining central to the plant's output. The company operated in a difficult post-socialist transition period, as Romania moved from state-directed industrial production toward partnerships with foreign manufacturers and more commercially oriented operations. In 1994, Automobile Craiova entered a 49%-51% partnership with Daewoo Heavy Industries, subsequently associated with Daewoo Motors, creating Rodae Automobile. The partnership broadened the plant's product range beyond the inherited Oltcit design. The Craiova facility produced Daewoo Tico, Cielo and Espero models, and later manufactured the Matiz and Nubira II. In 1997, the company was renamed Daewoo Automobile Romania and opened a new engine and transmission facility, increasing the site’s industrial scope. The collapse of Daewoo Motor in South Korea created a major strategic problem. General Motors acquired most of Daewoo Motor in 2002 but did not acquire the Romanian, Polish, Ukrainian or Uzbek plants. As a result, the Romanian operation was separated from the newer GM Daewoo product cycle and faced restrictions affecting exports and access to newer models. Competition also intensified after General Motors began marketing former Daewoo products under the Chevrolet brand in 2003. The Romanian government bought Daewoo's 51% interest in 2006 for US$60 million, restoring state control before seeking another industrial investor. Ford Motor Company agreed in 2007 to acquire a 72.4% stake for €57 million, and the acquisition contract was signed on 21 March 2008. Ford subsequently increased its holding to 95.63% by May 2009. The fixed assets were later transferred to Ford Romania, marking the effective end of Automobile Craiova as the operating automotive identity of the site. Under Ford, the Craiova plant moved into a new phase of production. The Ford Transit Connect was identified as the first Ford model produced there, followed by engines and the Ford B-Max small multi-purpose vehicle. In 2016, Ford announced a €200 million investment associated with production of the Ford EcoSport for the European market from autumn 2017. These later activities belong primarily to Ford Romania rather than to the former Automobile Craiova or Oltena brand. Automobile Craiova is therefore best understood as a historical Romanian automotive company and transitional corporate successor to Oltcit, rather than as a currently operating independent consumer brand.

The Craiova automotive plant was founded in 1976 as Oltcit, a joint venture in which the Romanian government held 64% and Citroën held 36%. The plant was intended to produce compact cars for the Romanian market and for export. Its principal early product was the Oltcit Club, also sold in Citroën-branded form as the Citroën Axel. The Oltcit name combined a reference to the Romanian region of Oltenia with an abbreviation of Citroën, and the brand identity visually echoed Citroën's chevron symbolism. Citroën withdrew from the joint venture in the political and economic changes following the end of Romania's communist period. In 1991, the Romanian state assumed Citroën's shares and changed the corporate name to Automobile Craiova. The factory continued production under the Oltena name, including versions of the Oltcit-derived hatchback. The Oltena Club was produced during the early 1990s, with the Club 12 CS also listed among the company's models. Seeking access to new technology, products and capital, Automobile Craiova entered a partnership with Daewoo Heavy Industries in 1994. The 49%-51% arrangement created Rodae Automobile. The plant's product portfolio then shifted toward Daewoo vehicles, including the Tico, Cielo and Espero. In 1997, the Romanian operation was renamed Daewoo Automobile Romania and added a dedicated engine and transmission factory. By 2001, it was also producing the Matiz and Nubira II. Daewoo Motor's financial collapse undermined the partnership's long-term stability. General Motors acquired most of Daewoo Motor in 2002, but the transaction excluded several production sites, including the Romanian plant. This left Daewoo Automobile Romania outside the new GM Daewoo product structure. The Romanian operation reportedly could not export its products to neighboring countries or manufacture newer models developed by the reorganized GM Daewoo business. Competitive pressure increased in 2003 when General Motors began selling related products under the Chevrolet name. In 2006, the Romanian government purchased Daewoo's 51% share for US$60 million. The state then sought a new strategic owner, and Ford became the successful bidder. Ford expressed interest in a 72.4% stake in 2007 for €57 million, and the acquisition contract was completed on 21 March 2008. Ford later increased its ownership to 95.63% by May 2009. The fixed assets were subsequently transferred to Ford Romania, effectively ending Automobile Craiova's role as the independent operating company associated with the factory. The site continued under Ford with production of the Transit Connect, engines and the B-Max. In 2016, Ford announced a €200 million investment connected with European production of the EcoSport at Craiova from autumn 2017. These developments demonstrate the industrial continuity of the factory, but they should not be confused with continued operation of the former Oltena or Automobile Craiova brand. The historical company occupies a transitional position in Romanian automotive history: it succeeded Oltcit, facilitated the Daewoo manufacturing period, and provided the corporate and industrial platform later absorbed into Ford's Romanian operations.

• 2016

  EcoSport investment announced

  [1]Oltenaen.wikipedia.org

  Ford announces a €200 million investment linked to European EcoSport production at Craiova from autumn 2017.

• 2009

  Ford ownership reaches 95.63%

  [1]Oltenaen.wikipedia.org

  Ford's holding in the company reaches 95.63% by May.

• 2008

  Ford takeover is completed

  [1]Oltenaen.wikipedia.org

  Ford signs the acquisition contract on 21 March and takes control of Automobile Craiova.

• 2006

  Romanian government reacquires Daewoo's stake

  [1]Oltenaen.wikipedia.org

  The state buys Daewoo's 51% interest for US$60 million.

• 2002

  Daewoo Motor restructuring leaves the Romanian plant outside the GM transaction

  [1]Oltenaen.wikipedia.org

  General Motors acquires most of Daewoo Motor but does not acquire the Romanian facility, contributing to the plant's strategic isolation.

• 2001

  Matiz and Nubira II added

  [1]Oltenaen.wikipedia.org

  The Craiova operation is producing Daewoo Matiz and Nubira II models in addition to earlier Daewoo products.

• 1997

  Daewoo Automobile Romania name adopted

  [1]Oltenaen.wikipedia.org

  The operation changes its name and opens a new engine and transmission factory.

• 1994

  Rodae Automobile partnership begins

  [1]Oltenaen.wikipedia.org

  Automobile Craiova partners with Daewoo Heavy Industries in a 49%-51% joint venture.

• 1991

  Automobile Craiova succeeds Oltcit

  [1]Oltenaen.wikipedia.org

  After Citroën's withdrawal, the Romanian state renames the company Automobile Craiova and production continues under the Oltena brand.

• 1981

  Oltcit production begins

  [1]Oltenaen.wikipedia.org

  The plant begins producing Oltcit vehicles, centered on the Oltcit Club and related Citroën-branded output.

• 1976

  Oltcit joint venture is founded

  [1]Oltenaen.wikipedia.org

  The Romanian government and Citroën establish a 64%-36% joint venture and build the Craiova automotive plant.

A Romanian automotive manufacturing company that evolved from a state-Citroën joint venture into a Daewoo partnership and ultimately a Ford-controlled industrial operation. During its Automobile Craiova period, it served both domestic vehicle demand and the needs of international manufacturing partners, while its later corporate activity focused heavily on spare parts and accessories before the Ford transition.

• Small hatchback · 1991

  Oltena Club

  The Oltena Club was the principal passenger-car model associated with Automobile Craiova's early period. It continued the production lineage of the Oltcit Club after the Romanian state took over Citroën's interest and the company adopted the Automobile Craiova and Oltena identities. The compact hatchback represented the plant's transition from the original Oltcit joint venture into a Romanian-controlled manufacturing operation.

• Passenger car · 1993

  Oltena Club 12 CS

  The Club 12 CS was a variant listed among the models produced under the Oltena name during the early 1990s. It belonged to the final phase of the Oltcit-derived product family before the Craiova plant shifted decisively toward Daewoo vehicles through the Rodae partnership.

• City car · 1994

  Daewoo Tico

  The Tico was among the first Daewoo models produced at Craiova after the 1994 partnership between Automobile Craiova and Daewoo. Its small-car format broadened the facility's range beyond the inherited Oltcit-derived hatchback and supported the plant's role in supplying the Romanian market.

• Compact car · 1994

  Daewoo Cielo

  The Cielo was produced at the Craiova facility during the Daewoo partnership period. It formed part of the company's move into a broader compact-car portfolio and was manufactured for the Romanian operation after the creation of Rodae Automobile.

• Mid-size car · 1994

  Daewoo Espero

  The Espero was another Daewoo model manufactured by the Craiova operation in the 1990s. Its inclusion gave the plant a larger passenger-car offering than the small Oltena and Tico models and reflected the product diversification enabled by Daewoo's partnership.

• City car · 2001

  Daewoo Matiz

  The Matiz was added to the Craiova production portfolio by 2001. It was manufactured during the Daewoo Automobile Romania period and represented the plant's continued participation in Daewoo's small-car range before the parent company's collapse and the subsequent Ford takeover.

• Compact car · 2001

  Daewoo Nubira II

  The Nubira II was also being produced at Craiova by 2001. It extended the Daewoo-era range into the compact segment and was among the final major Daewoo products associated with the plant before the business was separated from the reorganized GM Daewoo product structure.

• 2008

  Transfer control to FordM&A

  Background

  The Romanian government sought a strategic owner capable of modernizing and integrating the Craiova plant into a global automotive network.

  Action taken

  Ford completed the acquisition contract for Automobile Craiova after agreeing to acquire a 72.4% stake for €57 million.

  Aftermath

  The fixed assets were later transferred to Ford Romania, and the plant moved into Ford vehicle and engine production.

  Agreed price for Ford's 72.4% stake. €57 million (2007 agreement; contract signed 21 March 2008)

  Source

• 2006

  Reacquire Daewoo's ownership stakeM&A

  Background

  Daewoo Motor's financial collapse and the exclusion of the Romanian plant from General Motors' acquisition created uncertainty over the facility's future.

  Action taken

  The Romanian government bought Daewoo's 51% share for US$60 million.

  Aftermath

  The state regained control and prepared the company for sale to a new international automotive investor.

  Purchase price for Daewoo's 51% stake. US$60 million (2006)

  Source

• 1997

  Expand into engines and transmissionsStrategy

  Background

  The Daewoo partnership had shifted the plant from a narrow inherited product line toward a broader automotive manufacturing platform.

  Action taken

  The company adopted the Daewoo Automobile Romania name and opened a new engine and transmission factory.

  Aftermath

  Craiova gained additional powertrain manufacturing capability and became more closely integrated with Daewoo's regional production system.

  Source

• 1994

  Enter a strategic partnership with DaewooM&A

  Background

  Automobile Craiova needed a broader product range and an international industrial partner after the end of its Citroën relationship.

  Action taken

  The company formed Rodae Automobile with Daewoo Heavy Industries in a 49%-51% partnership.

  Aftermath

  The plant began producing Daewoo models including the Tico, Cielo and Espero, later adding the Matiz and Nubira II.

  Source

• 1991

  Rename the company Automobile Craiova after Citroën's withdrawalStrategy

  Background

  Citroën withdrew from the Oltcit joint venture during Romania's post-communist transition, leaving the Romanian state as the relevant owner of its interest.

  Action taken

  The company was renamed Automobile Craiova and continued vehicle production under the Oltena brand.

  Aftermath

  The change preserved production at Craiova while establishing a Romanian corporate identity separate from Oltcit and Citroën.

  Source

1. 1Oltenaen.wikipedia.org