BUDAPEST - Laszlo Steiner, chief executive officer of Hungarian automotive group Raba, will not seek the renewal of his tenure at next month's annual general meeting, the company said on Thursday.
Steiner was criticized earlier this week by the municipality of Gyor, the biggest single shareholder in the company, and was asked to leave the firm.
Leaders of the northwest Hungarian town of Gyor, home to Raba, while acknowledging the difficult international environment in which the company had to operate in the last two years, charged that Steiner could have done a better job.
Raba posted a loss of 2.48 billion forints in 2002 on sales of 39.4 billion, against a year-earlier profit of 1.8 billion on sales of 57.23 billion.
Raba's management blamed the recession in the heavy vehicles industry and particularly the poor performance of the U.S. market for the losses.
The company went through a radical streamlining in the last two years, selling most of its non-core subsidiaries, and hoped to return to profit this year.
Steiner, 56, an engineer by training, was appointed CEO in 2001 and his successor will be appointed at the April 23 general meeting.
The Gyor municipality has a 11.2 percent stake in Raba, followed by the European Bank for Reconstruction and Development with 10.85, DRB Hicom Group with 10.85 and Graboplast with 8.6 percent.