Warsaw (Puls Biznesu) – The Ministry of the Treasure is going to join the protest of FSO car plant against cutting production. Brussels demands lower capacity.
The Ministry of the Treasure (MSP) promised the car producer to support it in negotiations with Brussels to win higher production limits. In December 2006, the European Commission (EC) approved of the public subsidies granted to the plant. FSO has had troubles ever since its former investor Daewoo went bankrupt. EC had one condition, however: public subsidies were allowed as long as the annual capacity was limited to 150,000 cars. This is hardly acceptable for UkrAwto, the new owner of the Warsaw plant planning to start mass production of Chevrolet Aveo there. FSO is considering to file a suit against this decision.
It looks like MSP, the Ministry of Economy, and the Office for Consumer Protection and Competition encourage FSO to do it.
“According to MSP data, the company plans to file a suit against the decision to limit production. MSP plans to joint the complaint if FSO owner submits it”, Slawomir Urbaniak, deputy Minister of the Treasure responsible for FSO said.
He adds that the only possibility is the court proceeding.
According to “PB” sources, MSP sent a letter over ten years ago to Tariel Wasadze, UkrAvto main shareholder concerning the support. Krystyna Danilczyk, FSO spokeswoman, refused to reveal whether the company is going to complain against EC decision.
