The Polish car manufacturer FSO is earning high profits despite a recent risk of bankruptcy.
The Polish car manufacturer FSO from Warsaw seems to have overcome the recent risk of becoming insolvent and recorded a net profit of 159.4 million zlotys in 2007.
“Thirty seven per cent of FSO’s net profit was generated from core activities. The rest comes from financial operations, mainly foreign exchange rate gains. We are also paying less for our foreign currency loans,” the company’s spokesperson, Krystyna Danilczyk told the Puls Biznesu daily.
The majority of analysts are in awe of FSO’s recent financial achievements, pointing out that the company’s future may now look very promising.
“The Ukrainian market, where FSO supplies the majority of its production output, is on the increase. [...] The combination of the American brand, Korean quality and Polish workmanship will doubtlessly facilitate the sales,” Chairman of the automotive analyst company “Samar” commented on FSO’s future perspectives.
In 1994, the Polish government sold the state-owned FSO to General Motors, but in the following year the company was sold to Korean Daewoo Motors, which went bankrupt in 2000, leading to an acute deterioration of FSO's position.
In 2005, the Polish State Treasury sold FSO to a Ukrainian investor UkrAVTO holding, the current owner of ZAZ, for a nominal value of one zloty to save the company from bankruptcy. Currently, FSO’s main product is the new T250 model of Chevrolet Aveo. (mj)