Daewoo-FSO plan envisages separate car production
In a bid to ensure its survival in the face of mounting debt and the slump
on the car market, struggling auto-maker Daewoo-FSO has announced plans to
separate car production from its other business interests. The aim is to
facilitate the search for a strategic investor and stave off a probable call
for bankruptcy from one of its creditors. The initial business plan
envisages the new company, which would employ 1,000 out of Daewoo-FSO's
current workforce of 2,800, producing 25,000 cars in the first year. The
company's non-auto making units would be left to focus on its other
businesses, which include real estate. Meanwhile, representatives of two of
Daewoo-FSO's major creditors, the Korea Development Bank and Korea Exim
Bank, will arrive in Poland today for talks on the company's future. "We
will discuss mutual commitments and the continuation of our cooperation,"
said Andrzej Zdebski, deputy Labor Minister and a member of the government
task force formed to solve the Daewoo FSO problem. (Puls Biznesu, p. 7) A.K.
