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FSO car factory may halve production in Poland

Despite the crisis, the FSO car factory in Warsaw will manufacture almost 150,000 cars in 2008, but sees worse outlooks.

“In Q1 2009 we should manufacture 15,000-16,000 vehicles,” said Janusz Woźniak, president of FSO. In his opinion, in the most optimistic scenario envisages that the plant will produce about 100,000 cars in 2009 if the crisis does not deepen and if the government supports the sector.

“Next year will be difficult for FSO. If the crisis persists, 70,000 cars will be a good result,” said Rafał Orłowski, automotive expert of The main recipient of the cars will be EU countries, as the majority of output is sent to GM's European sales network, as the firm owns Chevrolet Aveo, which is currently the main product of the FSO plant.

However, due to GM's problems, FSO is looking for new partners willing to commence production in Żerań. “We sent documents to several large concerns. Regretfully, for the time being everyone is refraining from making any decisions until the market stabilizes,” said Woźniak. (Warsaw Business Journal)