General Motors signed a letter of intent Thursday to build a car-making factory in southern Poland, where inefficient coal mines are threatening mass worker layoffs.
The non-binding agreement with the Polish Trade and Industry Ministry could be finalized by the end of April. The plant is planned for the industrial region of Silesia.Meanwhile, South Korea's Daewoo signed an agreement to invest $1.12 billion over the next seven years in Warsaw's Passenger Car Factory. The agreement gives the South Korean car manufacturer 70 percent of the Passenger Car Factory SA, known by its Polish initials, FSO.
The new company will be called Daewoo-FSO Motor Ltd., but the Polish government maintains a so-called "golden share," allowing it veto power over strategic decisions.
The Daewoo-FSO Motor Ltd. factory will continue to produce 100,000 Polish-designed Polonez cars yearly, but will also start production of up to 30,000 Daewoo Tico and Espero cars per year.