Car assemblers close up shop as duties squeeze margins

Car assemblers close up shop as duties squeeze margins Only companies already assembling chassis and car bodies in Poland will be eligible to be granted a duty-free import quota on car components next year. For European Union (EU) companies operating in Poland, assembling cars will become unprofitable as the duty imposed on importing cars is decreasing. A few years ago, they imported car components duty-free, when at the same time the duty on car imports was up to 35%. This is no longer the case, as this year the duty is 10% and will be eliminated in two years. Several companies including Ford and General Motors have already closed their car assembly manufactures and it seems they will be followed by Volvo shortly. Among those remaining on the Polish market are Citroen and Berlingo. They are now assessing the profitability of continuing production. (Puls Biznesu, page 5)