The core business of the Company

On April 22 2004, GMDAT signed an agreement with FSO on extension of rights for production of Lanos and Matiz till the end of 2006, and the rights for sales till the middle of 2007. The agreement also guarantees FSO’s right for the cars’ export and for delivery of spare parts for 7 years.

The cars are manufactured with high-quality machines and equipment. Owing to investments of over USD 800 million made in the period 1996-2000, FSO is now a modern company. Paint, general assembly, and press shops are modern facilities which allow achieving the highest quality standards of production, which may reach 250 000 vehicles per year. A substantial portion of the new assets can be used for production of modern cars. The Company offers to potential investors much lower manufacturing and test costs compared with Western Europe owing to labor costs, which are 2-4 times lower than on the EU market.

FSO hires staff with high qualifications. A large number of the Company employees have undergone training in modern foreign plants in accordance with international standards. The Company’s engineering-technical staff has a lot of experience in cost reduction of products, production supplies, design, and homologation of new models.

The company is operating in accordance with ISO 9001 and ISO 14001 standards. Due to their high quality, the Company products enjoy a firm reputation and trust among hundreds of thousands of satisfied customers. The Company pays a lot of attention to maintenance of good contacts with its suppliers. At FSO, there is a verified system of supplier assessment, and modern logistical systems, among others Material Requirement Planning, the Kanban system and the suppliers’ buffers.