In the first half of 2010, Warsaw's FSO car factory in Żerań assembled only 20,000 cars. This represents one third of 2009 production (60,000 cars) and one eighth of 2008 production(149,000).

If FSO does not find an investor for its new model soon, its operations could come to a standstill. It has already cut spending in numerous fields: in energy consumption, on production lines, in ordering policy. Wages have also been reduced, after Feburary negotiations with trade unions. By the end of 2011, wages will fall by 22%, pension compensation will be reduced by half and two-yearly anniversary bonuses will not be paid.

Some 1,979 people are employed at Żerań FSO. Its assembly of Chevrolet Aveo and Daewoo Lanos components from Ukraine brought the firm zł.189 million loss last year. In socialist times FSO produced the Fiat 125 and Polonez at the Żerań plant.

Source: Poland AM