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Fiat, Zastava sign contract on assembling Punto in Kragujevac
Belgrade,
20 September 2005
Representatives of the Zastava car factory in Kragujevac and the Italian car manufacturer Fiat signed today a contract on the licence for assembling Fiat’s Punto model in Serbia-Montenegro. The contract was signed at the premises of the Serbian Development Fund.
Author:
Fonet
On behalf of Fiat Vehicles, the contract was signed by President of Business Development Ezio Barra, Vice President for Communications Gualberto Ranieri, and on behalf of Zastava, by Managing Board President Milorad Savicevic, General Director of the Zastava Group Zoran Radojevic, and Director for Restructuring Milosav Djordjevic.
Serbian Minister of Economy Predrag Bubalo explained that the contract does not imply that Zastava is now privatised, but that a technical and business cooperation will be established.
Bubalo said that the first ten Punto cars with a Zastava logo will be presented during the campaign “Days of Italy in Belgrade”, scheduled for October 10 and 11.
If Zastava workers prove that they are competent for assembling a modern vehicle, prerequisites for attracting a new strategic partner into the largest Serbian car factory will be attained, Bubalo explained.
Fiat's Vice President for Communications Gualberto Ranieri said that the signing of the agreement for the Italian partner not only represents a new step in the long-term cooperation with Kragujevac's Zastava, but that it is also a step that will enable Zastava to enrich its offer for domestic and international markets.
He said that the revival of the cooperation between the two companies will also be seen in the accelerated payment of Zastava's debts from the past, defined by the contract from June 2004.
According to basic provisions of the contract, production, that is the assembly of the Punto model in Kragujevac, will begin in 12 months. By that time, technology will be modernised and workers trained.
Annual production is expected to reach 16,000 cars, with costs reduced by 25 percent.
Serbian Minister of Economy Predrag Bubalo explained that the contract does not imply that Zastava is now privatised, but that a technical and business cooperation will be established.
Bubalo said that the first ten Punto cars with a Zastava logo will be presented during the campaign “Days of Italy in Belgrade”, scheduled for October 10 and 11.
If Zastava workers prove that they are competent for assembling a modern vehicle, prerequisites for attracting a new strategic partner into the largest Serbian car factory will be attained, Bubalo explained.
Fiat's Vice President for Communications Gualberto Ranieri said that the signing of the agreement for the Italian partner not only represents a new step in the long-term cooperation with Kragujevac's Zastava, but that it is also a step that will enable Zastava to enrich its offer for domestic and international markets.
He said that the revival of the cooperation between the two companies will also be seen in the accelerated payment of Zastava's debts from the past, defined by the contract from June 2004.
According to basic provisions of the contract, production, that is the assembly of the Punto model in Kragujevac, will begin in 12 months. By that time, technology will be modernised and workers trained.
Annual production is expected to reach 16,000 cars, with costs reduced by 25 percent.
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