Polish car-maker FSO faces a summer of uncertainty as it plans to halt production between May 7 and June 20. The firm also plans to slash 650 jobs – to be phased through June – with 100 employees already axed in March.

According to Ryszard Kowalski, director of FSO’s management office, the firm will experience a satisfactory April, but lack of demand will force the summer shutdown.
“The level of orders is very low, and the ship with parts needed for production hasn’t even left [South] Korea,” Kowalski told Rzeczpospolita. “In July the holiday season starts, so there will be further downtime. Summer is a period for maintenance and repair [in the factory],” he added.

Kowalski believes that a return to full capacity will commence in August at the earliest. The firm has also identified demand in the Ukrainian and German market, which they hope will rescue the faltering company.

However, concerns are mounting about the knock-on effect the closure will have on smaller firms connected to FSO.

“It’s a very dangerous situation for FSO, but also very dangerous for suppliers, particularly those associated with the capital factory [in Żerań, Warsaw],” Rafał Orłowski, an analyst with AutomotiveSuppliers.pl was quoted by Rzeczpospolita as saying. “What will they do for a dozen weeks from May to August?” he asked.

The size of salary payments the workers will receive during the break is unknown, but the executive board is currently negotiating the matter with trade unions.