FSO awaits crucial EC ruling over government help

The EC have been questioning the issue for several months as they would most happily see a limit of 150,000 cars annually produced in the plant in order to protect EU producers. However, the issue is crucial for the domestic firm, as if EC makes such a ruling then AwtoZAZ might decide to withdraw from the investment. The rights to manufacture Lanos and Matiz cars expire at the end of this year, and that is when the Ukrainian investor plans to launch the production of a Chevrolet models. The aid that the Polish government proposed is a guarantee of a sum of 60% of an investment credit worth $100 million which will be needed to launch the production of a new model. (Puls Biznesu, p. 6) A.K.