Contingency plan for Daewoo-FSO's Zeran plant planned by Ministry

According to unofficial information in Puls Biznesu, the Economy Ministry is preparing a plan B for the ailing Daewoo-FSO Zeran factory in Warsaw. The scenario is an alternative in case the plan of MG Rover's investment does not succeed. "We want Daewoo-FSO to produce a new car based on the chassis of, say, the Lanos. Rover could deliver the engines and restyling by Italian designer Pininfarino would be an expense of around zl. 1.2 million. The car could be re-branded as a new model," said an industry insider close to negotiations on the New Small Company and its search for an investor. The quest for a contingency plan is part of the context surrounding talks with MG Rover. The British company suggested that money for the investment in Zeran could be obtained as part of the offset agreements from the tender for 48 multi-task jets for the Polish military. The British demonstrate in the business plan presented to the Economy Ministry that $380 million is needed for the Daewoo-FSO investment, plus an additional $150 million for reserves. Rover claims that if Poland decides to buy the British Gripen aircraft there is a good chance that British Aerospace would cover the financing. (Puls Biznesu, p. 3) P.W.