Fiat Auto Poland hands over Seicento engine production to F.A. Powertrain

Fiat Auto Poland ceased production of its Seicento engines after it signed an agreement on Nov. 30 with F.A. Powertrain, an engine producer jointly owned by Fiat and General Motors, handing over engine and transmission production to the latter. On the basis of the transaction, valued at zl.183 million, Fiat will now buy all engines from F.A. Powertrain Polska, a onetime Fiat Auto Poland subsidiary which was later sold to Fiat Auto Holding B.V., a GM-Fiat partnership registered in the Netherlands. Powertrain's biggest asset is said to be the fact that it operates in the Katowicka Special Economic Zone (SSE), where, upon meeting certain criteria, such as substantial investment and job creation, companies are granted a 10-year tax holiday. Powertrain plans to invest at least zl.400 million into production of small diesel engines by the end of 2004. (Gazeta Wyborcza, Dec. 2-3, p.25)