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March 28, 2003

POLAND: Daewoo-FSO plant plans to go it alone after Rover talks fail – report

Warsaw Business Journal (WBJ) reports that the management of the ailing Daewoo-FSO plant in Zeran, Poland, have announced they have been working on a new business plan which envisages continuation of operations without an agreement with Britain's MG Rover.

By bcusack

Warsaw Business Journal (WBJ) reports that the management of the ailing Daewoo-FSO plant in Zeran, Poland, have announced they have been working on a new business plan which envisages continuation of operations without an agreement with Britain’s MG Rover.

Another report said Rover executives had returned to England recently having failed to agree a satisfactory deal.

The WBJ said the basis of the plan still involves formation of the New Small Company (NSC).

“We want to start negotiations with GM Daewoo concerning extension of our rights to produce the Matiz and Lanos models. Currently, we can maintain production for the next two years, and continue selling them for the next three,” said Michal Relewicz, member of the board at Daewoo-FSO and director for planning.

In the meantime, the management is holding negotiations with the trade union concerning the planned layoff of 1,720 of its current 3,200 employees. However, the layoff has to be confirmed by a shareholders meeting, planned for April 22.

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