Ford takeover introduces uncertainty to Daewoo FSO
Uncertainty is growing at Daewoo FSO plants in light of the takeover of
the parent company in South Korea by Ford Motor Company of the US. The
situation is complicated by Daewoo's ownership or substantial stakes in 16
auto parts makers across Poland. The largest of these plants is Zaklad
Elektrotechniki Motoryzacyjne of Elk which producers electrical
components. Ford tends to uses subcontractors to supply parts and it does
not produce its own. It is not yet clear whether Ford's sister company,
Visteon, which specializes in making auto parts, would be willing to
takeover Daewoo's associates. Worse still, Daewoo owns non-auto companies
like Terrabud which produces building materials. Most analysts say Ford
may sell off the non essential Daewoo holdings in Poland. (Rzeczpospolita,
page B3).
