VW ponders moving Polish operations to Czech Republic

Business barriers created by Poland's bureaucracy have caused German motor concern Volkswagen to seriously consider moving its production of C4 small vans from Poland to the Czech Republic. In October 2001, Volkswagen said it intended to spend DM 1 billion on the expansion of a car factory in Poznan. The factory was to produce as many as 150,000 vans and employ 5,000 people by 2005. However, part of the land where the VW factory would stand belongs to the Central Customs Office (GUC). There is also a building on the site which, according to Rzeczpospolita's anonymous source, is currently not being used by the GUC. The issue has not been resolved despite the int ervention of Economy Minister Jacek Piechota. "The representatives of VW have become impatient and are considering moving the van production line to the Czech Republic, where the concern has the option of expanding its factory," said Rzeczpospolita's informant. The VW office in Poznan declined to comment on the issue. Two other automobile concerns, BMW and Hyundai, have also announced their interest in investing south of the border. (Rzeczpospolita, p. A1) A.Z.