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Daewoo-FSO Motor car plant at Żeran (Warsaw)

completedstage: operationaldeliveredunderused
PLN 3.7 billion
programme budget (multi-year) · data from 1995net or gross: not recorded≈ PLN 3.7 billion (value-by-stage, est., nominal)funding: private finance, other sourcesThe source gives 1,500 mn USD. The zloty figure is our conversion at the rate for 1995, so the site fixed rate will not reproduce it.

On 14 November 1995 an agreement was signed at the Ministry of Industry and Trade to privatise the Passenger Car Factory at Żeran in Warsaw and to establish the Daewoo-FSO joint venture, in which the Korean conglomerate Daewoo took almost 90% of the shares, with the Polish side remaining a minority shareholder. The new investor committed to an outlay of around USD 1.5 billion (some sources give USD 1.1 billion) and promised eventual production of around 500,000 cars a year. The Żeran plant was modernised and expanded, raising production capacity to 225,000 cars a year; production of the Daewoo Tico began in 1996, soon supplemented by previous-generation models (Nexia, Espero), and then by assembly of the Lanos, Nubira and Leganza, and, from late 1998, the Matiz. After the 1997 Asian financial crisis, the Daewoo conglomerate fell into serious financial difficulty; in November 2000 Daewoo Motor's debt reached about USD 20 billion, and bankruptcy was declared for the group's car division. FSO was not included in General Motors' rescue plan, and car production at Żeran, later continued under the FSO brand, finally ended in 2011.

Why it failed

The Daewoo-FSO joint venture, established on 14 November 1995, was meant to be a driving force for the Polish car industry, and Daewoo committed to an investment of around USD 1.5 billion. After the 1997 Asian financial crisis, the Daewoo conglomerate fell into serious financial difficulty; in November 2000 Daewoo Motor's balance sheet showed about USD 20 billion of debt, and bankruptcy was declared for the car division. FSO was not included in General Motors' rescue plan, and car production at Żeran, later continued under the FSO brand, finally ended in 2011.

How it went

Assessment: settled, as of 25 Jul 2026. This is our reading, not a verdict, and we show it only where a quote from a source listed below stands behind it. Of the four, 2 carry no assessment yet. How to read this section

Deliverydelivered[1]
Utilisationidle[2]
produkcja samochodów na Żeraniu
Current
produkcja zakończona w 2011 roku (ostatni samochód opuścił linię)
Capacity or target
225 tys. samochodów rocznie
Unit
auta/rok

Timeline

  1. Announced1995
  2. Construction start14 Nov 1995
  3. Delivery1996

Change history

  • 1996status: completedUruchomienie produkcji samochodów na zmodernizowanym Żeraniu pod kontrolą Daewoo (start produkcji Daewoo Tico).
  • 1996stage: operational

Significance

The privatisation of the Passenger Car Factory at Żeran and the establishment, on 14 November 1995, of a joint venture with the Korean conglomerate Daewoo (which took almost 90% of the shares) was one of the largest foreign investments in Poland in the 1990s and was meant to be a driving force for the domestic car industry. The investor committed to an outlay of around USD 1.5 billion; the plant was modernised and expanded, raising production capacity to 225,000 cars a year. Żeran produced, among others, the Daewoo Tico, Nexia and Espero, and later the Lanos and Matiz. After the 1997 Asian crisis and Daewoo's bankruptcy in 2000, the venture collapsed, and production, later continued under the FSO brand, ended in 2011.

Sources 5 · 5 independent · 2 archived

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  1. Motoryzacja Interia.pl
    StatusStageCostDelivery
    Status · Deliveryw 1996 na Żeraniu ruszyła produkcja Daewoo Tico, uzupełnioną wkrótce przez modele poprzedniej generacji: Nexię i Espero
    Stage · Deliveryw 1996 na Żeraniu ruszyła produkcja Daewoo Tico
    CostNowy właściciel zobowiązał się do inwestycji na poziomie 1,5 mld dolarów
  2. Autoblog / Spider's Web2018
    AnnouncedInvestorUtilisation
    Announced · Investor23 lata temu, 14 listopada 1995, podpisano umowę o powołaniu do życia spółki Daewoo-FSO.
    UtilisationZmodernizowano i rozbudowano zakłady, podnosząc możliwości produkcyjne do 225 tysięcy samochodów rocznie.
  3. bezpiecznapodroz.org17 Aug 2025
    Construction startInvestorFailure description
    Construction startUmowa joint venture – Daewoo-FSO – została formalnie podpisana w listopadzie 1995 r.
    InvestorKoreańczycy objęli niemal 90% udziałów.
    Failure descriptionW listopadzie 2000 r. bilans Daewoo Motor pokazał 20 mld USD długu. Marzenie o wejściu do pierwszej dziesiątki światowych producentów samochodów legło w gruzach. Ogłoszono bankructwo.
  4. eGospodarka.pl14 Nov 1995
    Cost
    Cost1 USD = 2,4740 PLN
  5. Funding
    Fundingsześcioletni program inwestycyjny, który miało zrealizować Daewoo, określono na 1 mld 121 mln USD
    FundingSkarb Państwa, w ramach swojego wkładu, umorzył wierzytelności