Latvia, Markets and Companies, Transport

Due to the huge losses, French Peugeot manufacture has stopped supply of new cars and replacement parts to "Peugeot" representative in Estonia and Latvia Kommest auto, informed newspaper Dienas Bizness.

According to the information, reported by the Estonian business newspaper Aripaev, the company Silgate Credit Enterprises Ltd petitioned to the court, demanding to establish the insolvency of Kommest auto, the functions of which in Latvia are carried out by the Estonian-owned Lauva auto.

According to unofficial information, the debts of Kommest auto amount to approximately EUR 10 million (LVL 7.03 million).

According to the information that Dienas Bizness has, the financial problems of Kommest auto during the past few months have seriously harmed the activity of Lauva auto.

The newspaper tried to obtain the information about the current situation and future of the Peugeot dealer in Latvia from the management of Lauva auto, but did not gain any response.

However, former employees of Lauva auto informed that they were urged to seek employment in other companies due to Lauva auto's unclear vision about the company's future and the company avoiding to carry out its obligations towards its clients.

Manufacturer's decision to stop the supply of replacement parts has not influenced company's operations so far, but it could create irreversible consequences in the long term, both for Lauva auto and the regional partners of Peugeot. The regional partners of Peugeot in Latvia are numerous, located in Cesis, Talsi, Jelgava, Bauska, Liepaja, Valmiera and Jekabpils.

Head of Peugeot Europe public relations department Martin Aletau confirmed to the newspaper that the factory has halted supply and the official announcement about evaluation of the situation will follow in the next few days.