Will Daewoo withdraw from Poland if GM deal fails?

The Korean trade ministry has warned that automaker Daewoo may withdraw from Poland if General Motors (GM) shrinks from purchasing the ailing Korean giant's Polish investments. According to Korean Economic Daily, the brain behind the decision is Arthur Andersen, which has carried out an internal audit of the company. The ministry information surprised Daewoo-FSO authorities. If GM does not take over Daewoo, the Korean minister will not be the person to decide on the future of our company. The last word is with the Polish government, the Daewoo Korean parent company; and Development Bank (BR), said Daewoo-FSO spokeswoman Krystyna Danilczyk. Polish authorities see rescue in the possible entrance of Korean Hyundai into FSO. It would be a good beachhead for the company expanding its production in European Union, said Polish Economy Minister Janusz Steinhoff, now waiting for a reply to his letter to the Korean deputy prime minister concerning the state of Daewoo's Polish operations, aggravated by the slow-moving talks with GM. Under the agreement between the Koreans and the Polish government, the former are obligated to invest $1.121 billion in the Zeran factory before 2002. So far it has put in only $800 million. (Puls Biznesu, p.9) J.K.