In a recent news release the BBC said that the Daewoo Corporation is stopping
cooperation with Ukraine. This information was refuted by Deputy Industrial
Policy Minister Vadym Liashchov in an interview with The Day last
Thursday.
Mr. Liashchov announced that Daewoo's Vice President Mr. Wang was also
surprised to hear the news. At the same time none of the parties seems
determined to soft-pedal the conflict. Mr. Liashchov explains that the
whole thing started after the Korean partner refused to follow the example
of all car manufacturers in lowering their prices on the Ukrainian market.
As a result, Daewoo Ukraine cars sell higher than those of the other market
suppliers, considering tax incentives. Of course, this cannot but dampen
Daewoo sales. The Ukrainian side insists on keeping up sales on credit
(stopped on Daewoo's orders).
Mr. Liashchov further pointed to the Korean side's demand that the management
of AvtoZAZ-Daewoo be replaced as unreasonable. "You can't go throwing around
cadres like that," he said.
However, at Daewoo Ukraine's press service The Day was told differently.
Messrs. Wang and Choi were quoted as saying that, unless the dispute is
settled within 90 days (March 25 being the deadline), the Korean side will
bring the issue before the Supreme Court of New York.
The Day received a statement from the parliamentary Reforms and
Order faction (at one time it actively lobbied for a bill on tax concessions
for the joint venture while obstructing sales of used cars). At present,
the party explains its stand by concern for jobs and for having a "national
car" affordable to most of the populace. The Deputies are "worried and
perplexed" by the situation. More importantly, they are taking a step back,
insisting that if Daewoo lowers its car investment it must be placed on
"equal terms with the other market operators in Ukraine." In other words,
the Koreans must be denied their tax privileges. Mr. Liashchov supported
this stand talking to The Day.
Here one is strongly tempted to pose three questions. One of them is
addressed to the President: Why are we always wise ex post facto? Also,
what will happen to the money of the members of car clubs organized by
Daewoo? (In fact, this author wanted to join them to have his car dream
come true, but thought better of it.) Most importantly, who will be held
personally responsible for this ill-advised decision?







