Daewoo-FSO to keep strong market foothold hoping to attract an investor

Sung Koog Yeo, the Polish head of Korean auto-maker Daewoo, said that the company intends to maintain its market share of more than 20% in Poland. Koog Yeo, speaking at the launch of the new mini-van Tacuma, confirmed that negotiations with U.S. car giant General Motors (GM) on taking over all or part of Daewoo are continuing. "We are waiting for their outcome," he said. Sung said creditor banks would support Daewoo's operations in Poland as long as its sales do not suffer drastic slumps. However, Daewoo' s sales are expected to drop to 96,000 cars this year from 170,000 in 1999, and its market share from 28% to 23%. Daewoo-FSO development director Maciej Motelski confirmed the firm is implementing a tough restructuring program, which will involve lay-offs among the Warsaw-based plant's 5,500 workforce and thousands of workers at smaller subsidiaries. He declined to disclose the company's forecast loss for 2000. (Reuters) M.K.