Slump in car sales deepens, manufacturers plan cutbacks

According to data published by consulting company Samar yesterday, around 31,700 new cars were sold in Poland in January 2001, one-fifth fewer in comparison to January 2000. Last year was tough for car makers, and according to forecasts this one will be even worse. If the declining trend continues, only 360,000 to 370,000 new cars will be sold this year. Optimists say that demand usually increases before the summer vacation season, while pessimists point to the uncertain future of Polish-Korean car maker Daewoo-FSO, as well as the lack of response from the Polish government on the issue of an excise-increase for imported second-hand cars. The auto sales crisis has had particularly bad repercussions on domestic car makers. In January 2001 their share in the new car market fell below 60%. The demand for Fiat vehicles was 37% less than last year, while for Daewoo cars it fell by a quarter and for Opels by more than 50%. Fiat has already reacted to the reduced demand by introducing production breaks at its Polish plants, combined with considerable staff lay-offs. (Gazeta Wyborcza, p. 19) A.Z.