Peugeot: Czech mate fear

French diplomats are pulling out all the stops to secure the new Peugeot Citroen car plant for Poland in the face of strong competition from the Czech Republic. But officials at the French embassy in Warsaw warn the government may not be offering enough in terms of financial "sweeteners," and executives of the car firm are also concerned about "terrible bureaucracy" hampering the project.
Said Marc Bouteiller, the French embassy's economic and trade counsellor: "There is a good chance, at least one out of two. The potential of Poland is huge, but the financial proposal by the Polish government is far too low compared to the offer from the Czech Republic and also from Hungary."
The €710 million would create 3,000 new jobs at either of the potential sites in Legnica or Radomsko, with another 10,000 created among suppliers to the projected small car plant.

Bouteiller observed that the cash-strapped Polish authorities had no extra money to commit from the budget, whereas the Czechs were extremely eager to promote foreign investment.
There were downsides in the background to the Czech offer. Peugeot Citroen executives were said to worry over political instability in the country and the growth of Euroscepticism among politicians.
The French car firm will complete its final evaluations in December and announce the winner in January.
A previous joint bid by Peugeot and Toyota for a plant at the Radomsko site collapsed with recriminations over the role of bureaucrats in fumbling the deal. The 200-hectare Radomsko site also has logistical problems, needing €20 million to level it out.