MG to take major stake in polish car plant

MG Rover is negotiating for a major stake in a Polish car plant to be carved out of the ailing operations of South Korean company Daewoo.

Stewart McKee of MG Rover refused to elaborate on the company’s planned investment, but he said it ‘‘will be big, because this industry requires big money.’’

‘‘A Polish operation would greatly improve MG Rover’s position in Europe,’’ he said in Warsaw.

‘‘This is all about achieving flexibility in producing the right car in the right market, on the most cost-effective basis.’’

The deal hinges on the creation of a new company from assets of Daewoo-FSO, a Warsaw-based joint venture of Daewoo and the Polish government.