Ford denies plans to build car plant in Poland

ord Motor Co. today denied a newspaper report that it is planning to build a $273 million car plant in Poland, the biggest of the European Union's former communist economies.

Citing government sources, the Puls Biznesu daily reported that Ford is close to signing a deal with Polish authorities to invest more than $273 million (820 million zlotys) in producing its Ka compact model in the southern city of Tychy.

"I deny that we are planning to build a car factory in Tychy for 820 million zlotys," said Monika Dobrolubow, spokeswoman for Ford's Polish unit.

She said that under an earlier deal with Italy's Fiat to cooperate on producing small cars in Europe, the two companies plan to produce 240,000 cars annually in Poland.

"Both companies are working on these models, which will be manufactured in Fiat's existing factory in Tychy," Dobrolubow said. She declined to say how much the two companies are set to invest in the venture.

Fiat is the biggest carmaker in Poland with total production of mainly compact models reaching nearly 287,000 units in 2005.
Source:autonews.com