Pol-Mot wants Daewoo, with government's backing

Polish automotive and agro-technology company Pol-Mot Holding wants to acquire a 51% stake in troubled Lublin-based truck-maker Daewoo Motor Polska (DMP) through a capital increase. Pol-Mot conditions its investment upon the government guaranteeing a $130 million loan necessary for DMP's development, as well as introduction of new regulations which would drastically limit the import of used cars and trucks. The government has reportedly declared interest in the venture. DMP is looking for an investor who would spend at least $50 million, required to launch the production of the new LD 100 model. In the meantime, DMP is undergoing restructuring, aimed at radically cutting costs. On Jan. 1 the company introduced a new organizational structure, with the number of departments cut from 113 to 87 and the number of managerial positions slashed by 64%. DMP will also lay off 912 people and plans to sell off some of its assets. (Puls Biznesu, pp.1, 6)