Automobile Craiova retains lawyers for negotiations

Automobile Craiovaa??s General Meeting of Shareholders decided to close another legal assistance contract with a law firm to sort out the debt issue and get the necessary counseling in order to lure some strategic investors to the car plant. The contract may be signed with a??Tuca & Asociatiia?? law firm. The carmaker, set up in 1994 as a joint venture between Automobile Craiova and South-Korean group Daewoo, is under an agreement with General Motors Daewoo Auto and Technology, which in September 2002 took over part of Daewoo Motor Co. assets. The agreement gives the company the right to produce car parts under Daewoo licence by this October only. Automobile Craiova is held by the state through the Economy and Trade Ministry (which owns some 72% in the plant), according to the latest data available. Romanian authorities are trying to find a way to salvage Daewoo Automobile Craiova, with the Government now seeking to allow the company to continue the carmaking operations and keep its over 3,000 jobs. ZF