Rover officially declares interest in Daewoo-FSO factory

Representatives of British automotive company MG Rover confirmed at a press conference on Friday that the firm will become an investor in the Zeran-base d Daewoo-FSO car factory. Rover plans to invest in a new production company called the New Small Company, created on the basis of part of Daewoo-FSO's a ssets. Rover wants to start production of five of its models within six mont hs to a year, including the renowned MG sports car. The British firm also de clared that it will invest a large amount of capital in the factory, but fur ther details are not available. Automotive sector analysts say that if the r estructuring of the company is effective and the new investor keeps its prom ises there is a good chance that the factory, which is in danger of declarin g bankruptcy, will be saved. Rover's PR director, Stewart McKee, sees two go od reasons for his company to invest in Daewoo-FSO, as he told Prawo i Gospo darka: By doing this, they can strengthen their position in Eastern Europe, at the same time saving the workers in Zeran from losing their jobs. (Prawo i Gospodarka, pp. 1, 6; Puls Biznesu, pp. 1, 5) A.D.