The cancellation of the investment program of VAT "LuAZ", according to the general director of the enterprise Volodymyr Hunchyk, could lead to bankruptcy and liquidation of the enterprise. To fulfill the requirements of state authorities when approving the investment program, investors transferred funds to the enterprise's charter fund in the amount equivalent to 30 million US dollars. If the investment program is not restored, the investors, represented by the Japanese firm ISUZU, demand the return of the contributed funds and compensation for losses through court. Thus, the total debt of the enterprise by court decision could amount to about 40 million US dollars. According to Volodymyr Hunchyk, 30 million dollars is 98 percent of "LuAZ's" charter fund. "I believe that those incidents that the enterprise has with the blocking of the investment program should become history, because 2003 and the first half of 2004 showed that this is not a program aimed only at resolving the preferential activity of the enterprise, as was stated in the Presidential Decree. The program is workable, real. Today this program fills the city budget, creates new jobs, increases production volumes of the city and region," said Volodymyr Hkunchyk. "We are ready to take into account all the remarks and proposals that were expressed by the Cabinet of Ministers, the Ministry of Industrial Policy, and to adjust the program," said Volodymyr Hunchyk.
Reference: In 2003, VAT "LuAZ" produced marketable products worth 159,632.7 thousand hryvnias. In 2003, the enterprise assembled 11,478 cars of various models, including 43 cars of its own production, 11,090 VAZs, 324 UAZs, 12 ISUZU NQR-71 trucks, 9 KIA K-2700 trucks, and converted 943 IZh cars and 108 UAZs. In the first quarter of 2004, VAT "LuAZ" produced marketable products worth over 100 million hryvnias. In the first quarter of 2004, VAT "LuAZ" assembled over 5 thousand cars of various modifications: 2,653 units of VAZ-2107, 1,602 units of VAZ-21043, 435 units of VAZ-2106, 329 UAZs, 55 Hyundai HD65, and converted 305 IZhs. As of today, the model range of cars assembled at the Lutsk automobile plant includes 7 models each of VAZs and UAZs, as well as ISUZU NQR-71, KIA K-2700, and Hyundai HD 65 trucks. Along with this, preparations are underway for the release of a new car of its own production, the LuAZ-1301.