Fiat chooses Upper Silesia for production of new model

Despite violent protests by its employees in Italy, Fiat has decided to locate the production of its new car in the Upper Silesian town of Tychy with a total investment set to reach as much as euro 570 million. The assembly line is almost complete and the first 300 vehicles, to be used for testing, will leave the plant in January 2003. "In fact the assembly line will be fully operational before Christmas," said Fiat's Gianni Coda. Commercial production is to commence in May 2003 with 70,000 mid-range cars to be assembled each year, though this number is expected to increase to 200,000 a year by 2004. "I am fully aware of the fact that only a small proportion of the new model's production will be sold in Poland. In 2004 we hope to export 160,000 cars," added Coda. Closely linked with the production in Tychy is Fiat's joint investment with General Motors in a Bielsko-Biala engine producing plant where the two companies have already invested euro 380 million. "The new car will be powered by engines produced in Bielsko-Biala," stressed Coda. (Puls Biznesu, p. 8) J.K.