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Car makers pushing for higher excises to prevent job cuts

Some 30,000 new cars were sold in January 2001, or 9,000 fewer than in January of 2000, according to preliminary data released by car market research firm Samar. Auto industry representatives claim the main reason for the fall in car sales is the massive import of second-hand cars. Around 210,000 used cars were imported to Poland in 2000 alone. As such, producers and importers continue to urge the Finance Ministry to introduce regulations calling for increased excise taxes on second-hand cars. The new sales data has car producers worried that if the trend continues, even bigger lay offs could be in store for the industry. "The January results indicate that the decline has not yet reached the bottom," said Fiat Polska president Enrico Pavoni. After Lublin-based van producer Daewoo Motor Polska laid off 900 people, it is likely that Warsaw-based Daewoo-FSO will dismiss as many as 1,300 workers out of 5,400 currently employed. Pavoni was reluctant to comment in more detail on the possibility of staff reductions at his company, stating only that such a measure could not be ruled out. (Puls Biznesu, p.7; Prawo i Gospodarka, pp.1,3) A.Z.

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