MG Rover Group, a British carmaker, has said that it is in exclusive talks...
MG Rover Group, a British carmaker, has said that it is in exclusive talks with the Polish government to take over the operations of Daewoo-FSO, the Polish unit of South Korea's Daewoo Motor Company.
Rover may build its own cars and engines at Daewoo-FSO's Warsaw plant, as well as continuing production of models currently made there, including the Matiz, Nubira and Lanos, the Rover spokesman Stewart McKee said at a news conference in Warsaw. The plant will help Rover expand sales throughout Eastern Europe.
The Polish government is trying to save Daewoo-FSO from bankruptcy after slowing economic growth forced employers to dismiss 320,000 workers in the year through April, pushing the jobless rate to 17.8 percent. Daewoo-FSO, which employs 10,000 workers, has debts totaling 4.24 billion zloty ($1.1 billion).
?It's very important to save a many jobs as possible to help maintain political stability,? said Grzegorz Stulgis, who helps manage $750 million in stocks and bonds for Credit Suisse Asset Management in Poland. ?It's also important to choose a sound investor.?