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The Government of the Republic of Serbia

In the service of citizens

Opel Astra to be assembled from next year

Belgrade, 19 July 2007

Serbian Deputy Prime Minister Bozidar Djelic said today that General Motors signed an agreement today with Zastava to begin assembling the Opel Astra Classic in Kragujevac in 2008.

Duncan Aldred, left, and Bozidar Djelic

Djelic told a press conference that according to the five year agreement it is planned that by 2012 10,000 vehicles are produced annually.

The Serbian Deputy Prime Minister said that for the first time a world renowned model will be assembled in Zastava, which is a huge opportunity as well as a responsibility for the factory to work according to the highest international standards.

Mladjan Dinkic

The agreement is good for Kragujevac and for the domestic automobile industry, because it makes us part of the high technology global automobile industry, said Djelic.

Serbian Minister of Economy and Regional Development Mladjan Dinkic explained that the agreement is similar to the one which the Serbian government signed with Fiat, and pointed to the fact that it will make it possible to import finished Opel Astra Classic cars during the first two years free of customs duty.

Predrag Bubalo

The government will allow 8,3000 vehicles to be imported free of customs duty, 3,300 of these cars will by imported by the end of this year, and 5,000 during 2008, said Dinkic and added that the price of the basic model will be €10,800 including VAT, instead of the present price of €13,250.

He said that the privatisation tender for Zastava will be announced in December and that cooperation between Zastava and General Motors will lead to a greater possibility of Zastava getting a good strategic partner.

Serbian Minister of Trade and Services Predrag Bubalo stressed that the state brought Zastava into a position to have opportunities that it did not have earlier, and recalled that this Kragujevac based company must be restructured in order to become successful.

Zoran Radojevic

A General Motors official for central and eastern Europe Duncan Aldred said that according to the contract it is envisaged that one more model will be assembled in Serbia, but the decision regarding which model will be brought after a market analysis.

He said that General Motors sales in Serbia increased by 93% in the first six months of this year against the same period last year.

Aldred said that from next year General Motors expects to sell more than 3,000 vehicles in Serbia, which means that 60% of all sold cars in Serbia will be the Opel Astra Classic.

General Director of the group Zastava Zoran Radojevic said that the decision by General Motors to invest in Serbia is a positive signal to other foreign investors.