New car sales drop 25% while auto service companies face bankruptcy

Only 23,637 new cars were sold in Poland in January, 25% fewer than last year and barely half as many as in January 1999. Domestic producers are the hardest hit by the slump, with Daewoo's sales falling by almost two-thirds compared to last year, and Fiat's sales dropping 41%. Meanwhile, the number of cars imported in January was 15,548, or 15% more than last year, in no small part as a result of the recent elimination of customs duties on cars made in EU countries. The demand for cheaper cars has fallen more than for more expensive models, the result being that the average price of a new car made in Poland was zl. 45,900 -- 10% more than in January 2001. According to the Polish Automotive Chamber (PIM), 20% of approximately 20,000 auto service companies operating on the domestic market went out of business in 2001, partly due the ban on imports of wrecked cars introduced last year. More than half of the service companies which ceased activities were located along Poland's western border. (Gazeta Wyborcza, Feb. 23-24, p. 27) T.J.