Chery may acquire FSO to produce QQ in Poland
- Source: Gasgoo
- [16:54 December 08 2010]
- Comments
China's Chery Auto is planning to acquire Polish automaker Fabyka Samochodow Oso-bouych (FSO) from its controlling stockholder: Ukravto, to locally produce its QQ models in Poland, media reported recently.
In 2009, the production capacity of FSO reduced to 59,695 units from 149,975 a year earlier. Due to the slump in demand and the needs for inventory control, FSO halted its production several times in 2009.
This year has seen a continual fall of its production. From January to May, FSO's production fell 50 percent year-on-year to 15,500 units.
On 29th, June, 1870 workers from FSO agreed to have their wages reduced by 20 percent and its president, Janusz Wozniak started negotiations with potential investors.
The unpromising situation of FSO contributes to Chery's acquisition of its shares controlled by Ukravto.
Holding FSO stocks and producing QQ models locally in Poland will further strengthen Chery's existing production network in the EU. For the time being, Chery has 8 factories in Russia, Ukraine, Iran, Egypt, Indonesia, Uruguay and Malaysia.
