According to a report in the Warsaw Business Journal (WBJ), MG Rover could be at the point of pulling out of negotiations concerning its possible investment in the Daewoo-FSO plant.
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The WBJ, citing the daily newspaper Rzeczpospolita as source, claims that it has learned that MG Rover’s management is considering terminating negotiations with the Polish government over investing in the car plant. There is also a suggestion that the company is leaning towards alternative options for its central European strategy, including car manufacturing in Slovakia or Hungary.
The report says that earlier, two of MG Rover’s deputy presidents, Nick Stephenson and Peter Beale, stated that February 14 was the deadline for signing a final agreement, as the company could not afford to wait any longer.
The report adds that the company is claiming to have found financial investors willing to take part in its project regardless of location.
Late last year, MG Rover’s negotiations with the Polish government and the creditors of the Daewoo-FSO plant appeared to stall. Under the plans, the creditors of the plant would receive equity in a new company, along with MG Rover, which would use its expertise to run the operation.
According to industry sources, MG Rover would continue to make two Daewoo models for two years and build five of its own cars at the plant, whose annual capacity would reach 200,000 units within a year of the new company’s creation.
There have also been reports that Hyundai-Kia could be interested in the FSO-Daewoo capacity.
