Daewoo president asserts that FSO will not be dissolved, places hope on GM

“Among our 12 foreign subsidiaries, Polish FSO poses the most troubles. However, we do not intend to dissolve the company,” said Daewoo Motor president Lee Jong-Dae. Noting that financial recovery programs have been started in all subsidiaries, he stated that the best solution for Daewoo-FSO would be acquisition by General Motors (GM), adding that negotiations should start in February. Yet it is almost certain that the European Commission would not agree to a transaction making GM so strong on the Polish market. Thus some analysts expressed hopes that Hyundai will take over FSO. Company officials admit it is interested in the Polish market, but whether Hyundai’s financial situation allows it to plan any acquisitions is uncertain. (Prawo i Gospodarka, pp.1,2,7) M.K