FSO wins key EC consent for AwtoZAZ investment

The task was not easy, as it encompassed convincing the EC to allow the granting of state subsidies to the plant. "In general the Commission consented to the aid. At the same time it was consistent with one main requirement, namely that output in Zeran should be limited to 150,000 cars annually until 2010. We want to propose a compromise which would satisfy the investor and the EC envisaging the exclusion of the Lanos model from this quota. Thanks to this, annual output could reach 200,000 units,"said Deputy Economy Minister Pawel Poncyljusz. It is possible that if the EC rejects a such proposal, AwtoZAZ might withdraw from the plant. The state is to guarantee a $100 million loan, which will allow the production of a new car model. (Puls Biznesu, pp. 1, 13) M.M.