Ssangyong's car sales hindered by unfavorable VAT law

Between October and the end of 2005 it sold 89 vehicles, but by the end of May the firm managed to sell 122 cars. "First of all we want to conclude the first phase of constructing a dealer network and despite a difficult market we plan to sell 470 cars," said Stefan Kuzminski, managing director of Ssangyong Poland. Initially the firm was planning to sell 1,000 vehicles in 2006, but these plans were complicated due to amendment to VAT law, which limited the number of automobiles on which companies could claim a VAT refund. "I believe it has a good chance of succeeding, but making this brand popular in Poland will require a lot of effort," said Wojciech Drzewiecki, president of Samar, a company researching automotive market in Poland. Ssangyoung'sdealer network will increase from 18 to 20 by the end of 2006. (Puls Biznesu, pp. 1, 11) M.M.