Q:
A:
Fiat, Zastava sign memorandum of strategic partnership
Kragujevac,
30 April 2008
Serbian Minister of Economy and Regional Development Mladjan Dinkic and Fiat Vice-President Alfredo Altavilla signed today in Kragujevac a memorandum of understanding, strategic partnership and joint investment for the Kragujevac-based car maker Zastava.
Author:
Fonet
The memorandum envisages the formation of a joint company, 70% of which will be owned by the Torino-based factory and 30% by Serbia.
According to this document, Fiat intends to begin producing a completely new model of class A automobile by the end of 2009 in Kragujevac, and the plan is to produce 20,000 vehicles a year.
In the course of the second stage, by the end of 2010, Fiat should begin producing another class B automobile, which would increase Zastava’s overall annual output to 300,000 vehicles.
Zastava’s output will thus increase twenty fold by end-2009, that is, thirty times within the next three years, while at the same time production of the Zastava 10 – Punto will continue.
Vehicles manufactured at Zastava will be sold on the EU market.
The government plans to introduce incentives for Fiat, such as considerable tax breaks and support to Kragujevac in terms of infrastructure and free-of-charge land for construction of the factory to allow it expand. It also plans to declare Kragujevac a duty free zone.
At the signing ceremony in Belgrade it was announced that Fiat President Sergio Marchionne will also arrive in Belgrade.
According to this document, Fiat intends to begin producing a completely new model of class A automobile by the end of 2009 in Kragujevac, and the plan is to produce 20,000 vehicles a year.
In the course of the second stage, by the end of 2010, Fiat should begin producing another class B automobile, which would increase Zastava’s overall annual output to 300,000 vehicles.
Zastava’s output will thus increase twenty fold by end-2009, that is, thirty times within the next three years, while at the same time production of the Zastava 10 – Punto will continue.
Vehicles manufactured at Zastava will be sold on the EU market.
The government plans to introduce incentives for Fiat, such as considerable tax breaks and support to Kragujevac in terms of infrastructure and free-of-charge land for construction of the factory to allow it expand. It also plans to declare Kragujevac a duty free zone.
At the signing ceremony in Belgrade it was announced that Fiat President Sergio Marchionne will also arrive in Belgrade.
-
Belgrade, 21 July 2025Construction of oil pipeline with Hungary to begin early next year
-
Belgrade/Athens, 17 July 2025Serbia continues to align with EU in field of energy
-
Kostolac, 14 July 2025First solar power plant Petka in Kostolac put into trial operation
-
Belgrade, 11 July 2025Potential for improving cooperation with Belarus in many areas
-
Požega, 5 July 2025Section of Pakovraće - Požega highway officially opened
-
Belgrade, 2 July 2025Technical specifications defined for Serbia-Hungary oil pipeline
-
Belgrade, 30 June 2025IMF confirms Serbia successfully implementing all agreed reforms
-
Belgrade, 27 June 2025Double Taxation Avoidance Agreement with Germany signed
-
Kostolac, 25 June 2025Construction of Kostolac wind farm nearing completion
-
Belgrade, 24 June 2025Government supports request for new postponement of sanctions against NIS