Daewoo Motor Polska in the red as Lublin sales tumble

The Lublin plant of Daewoo Motor Polska (DMP) could retrench up to 1,200 of its 6,200 employees due to diminishing demand for its Lublin delivery vans. In the first nine months of this year, Lublin sales slumped to 7,000 units or 10% less than in the corresponding period last year. According to DMP press secretary Andrzej Binkowski, the drop in sales is due to the increase of imported second-hand cars on the market. Imports of vans and trucks last year reached 20,000, but as many as 15,000 of these vehicles were imported in the first six months of this year alone. Worse yet, half these vehicles are vans of the Lublin type. The drop in sales of the Lublin has also caused a slump in demand for spare parts manufactured at the plant. The factory's financial troubles are nothing new, however, since it incurred losses of zl. 44 million from sales revenues of zl. 800 million last [financial] year. (Prawo i Gospodarka, p. 2).