FSO pushes on with new car development

The plans showed that next year will see the production of a new car model commence alongside radical improvements to the plant's financial condition. "In 2007 we should, for the first time in several years, record a real net profit, not only on paper," said FSO's member of board for finance and planning, Zofia Duran. This will be the first positive result since 1998, when FSO earned zl.41 million. In 2005 the net loss reached zl.249 million, while this year revenues are to stand at zl.1.2 billion. This is an increase of 42% compared to 2005, however, the end result will still amount to a loss. FSO is also still waiting for the European Commission (EC) to give it a green light for governmental guarantees. "We have come to Poland to produce cars. Therefore regardless of the decision of the EC we will invest in the development of production," announced Ukrauto deputy president, Oleg Papaszew. (Puls Biznesu, p. 14) A.K.