Ukrainian authorities closed operations at a Volkswagen group assembly plant for two days last month in a tax dispute.
On September 6, a regional tax office demanded Evrocar pay 3 million hryvnias (E475,500) in additional taxes, froze the company's assets and ordered production shut down until the end of September.
But after direct intervention by the Ukrainian central tax office and its director, regional authorities backed down and production resumed two days later. Andrei Maisner, a spokesman for the State Tax Administration, said officials are investigating the dispute.
"It is very important for us not to allow any pressure on any company, particularly on such a strategic one," Maisner said.
Evrocar is a joint venture between local investors and the Polish Iberia Motor Co. Located in western Ukraine near the Slovak and Hungarian borders, Evrocar assembles Skoda and VW models from semiknockdown kits.
Evrocar assembled 3,691 cars in the first half of 2004, up from 2,320 in the same period a year earlier.
The company plans to gradually move to complete knockdown manufacturing and add a paint shop at the site.