The Polish News Bulletin reports that the Polish Treasury has signed a preliminary agreement to sell 20.36 percent of shares in the FSO car plant to Ukraine’s AwtoZAZ automotive company, said Deputy Treasury Minister Mariusz Witkowski.
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The agreement will become effective once the Ukrainian investor obtains the necessary permits from the Office for Competition and Consumer Protection (UOKiK) and the Ministry of Interior Affairs and Administration (MSWiA).
AwtoZAZ has long been the lifeline for FSO, which sold to Ukraine 40,000 cars in the years 2000-2003. A year later AwtoZAZ was receiving 88 percent of the entire FSO production.
The agreement between FSO and AwtoZAZ stipulates that a new model be introduced in 2007. In addition, the FSO plant is to increase its output to 150,000 cars per year in 2009. The government decided to give the green light to the transaction with AwtoZAZ last November.
Before any definitive deal is signed, the Polish government will examine Avto-ZAZ’ financial position. This should be done by the end of June.
Daewoo-FSO was excluded from the 2002 takeover of Daewoo Motor by General Motors Corp.
