Q:
A:
Fiat Punto production contract signed
Belgrade/Turin,
30 January 2009
Serbian Deputy Prime Minister and Minister of Economy and Regional Development Mladjan Dinkic and COO of Fiat Group International Silverio Bonfiglioli signed today in Turin a contract on the production of Fiat Punto by Kragujevac car maker Zastava.
Author:
www.rts.rs
The production of Fiat Punto cars, also planned for export, will begin in March.
At least 15,000 cars should be produced by the end of the year.
After the meeting with Bonfiglioli, Dinkic stressed that he was encouraged by today’s talks in Turin because in the midst of the global financial crisis Serbia received confirmation that the joint investment with Fiat will go ahead as planned and Zastava employees will have work this year.
He said that, despite the fact that the demand for cars has dropped, an agreement was reached to guarantee jobs to Zastava employees, bringing work to the factories in Kragujevac and to suppliers in Serbia.
He confirmed that a new model of Fiat will go into production by the end of next year, adding that during today’s meeting the business plan for this year was also approved, envisaging that the production of the Fiat Punto will begin in Kragujevac by the end of March.
He said that during the two day talks in Turin it was agreed that 15,000 Fiat Punto cars be produced in 2009, which will exceed Zastava’s entire annual production for last year.
Dinkic said that production might be doubled if Russia, in accordance with earlier plans, approves the duty free import of cars from Serbia.
He said it was agreed with Fiat executives that most of the car parts being used for production in Kragujevac will be secured in Serbia.
Cooperation will be established with US Steel, which is to supply the raw materials for production, leading to more employment in Serbia, said Dinkic.
He said they discussed the possibility of lower prices of cars produced in Kragujevac for consumers in Serbia, the Central European Free Trade Agreement region and Russia, and of enabling them to trade old cars for new ones.
We will motivate citizens who do not have ecologically sound engines to replace their old vehicles with new ones with a considerable discount, said Dinkic, announcing that in July Zastava will begin producing a Punto with a diesel engine which will use only four litres of fuel per 100 kilometres.
The Minister announced that the new model will be launched by 2010, adding that preparations will begin at once, starting with the factory overhaul.
The Italians will this year bring a portion of their investment, so we could be ready to launch the new model by the end of 2010 and thus in 2011 reach full capacity as envisaged in the contract, explained Dinkic.
The Deputy Prime Minister said there will be more work for Zastava employees than at present, announcing that on Monday he will invite representatives from the unions, factory and Kragujevac for a meeting at which he will brief them in detail about everything that was agreed upon today in Turin.
Fiat Vice-President of Communications Gilberto Ranieri stated following the meeting that the goal is to produce a minimum of 15,000 Punto vehicles in 2009.
He confirmed that the Fiat Punto produced in Serbia will not be for the Serbian market but for export to neighbouring countries, North Africa and Russia.
The launch of production in Kragujevac is the first part of the joint investment of Fiat Group Automobiles and the Serbian government, leading towards the joint company Fiat Automobiles Serbia.
At least 15,000 cars should be produced by the end of the year.
After the meeting with Bonfiglioli, Dinkic stressed that he was encouraged by today’s talks in Turin because in the midst of the global financial crisis Serbia received confirmation that the joint investment with Fiat will go ahead as planned and Zastava employees will have work this year.
He said that, despite the fact that the demand for cars has dropped, an agreement was reached to guarantee jobs to Zastava employees, bringing work to the factories in Kragujevac and to suppliers in Serbia.
He confirmed that a new model of Fiat will go into production by the end of next year, adding that during today’s meeting the business plan for this year was also approved, envisaging that the production of the Fiat Punto will begin in Kragujevac by the end of March.
He said that during the two day talks in Turin it was agreed that 15,000 Fiat Punto cars be produced in 2009, which will exceed Zastava’s entire annual production for last year.
Dinkic said that production might be doubled if Russia, in accordance with earlier plans, approves the duty free import of cars from Serbia.
He said it was agreed with Fiat executives that most of the car parts being used for production in Kragujevac will be secured in Serbia.
Cooperation will be established with US Steel, which is to supply the raw materials for production, leading to more employment in Serbia, said Dinkic.
He said they discussed the possibility of lower prices of cars produced in Kragujevac for consumers in Serbia, the Central European Free Trade Agreement region and Russia, and of enabling them to trade old cars for new ones.
We will motivate citizens who do not have ecologically sound engines to replace their old vehicles with new ones with a considerable discount, said Dinkic, announcing that in July Zastava will begin producing a Punto with a diesel engine which will use only four litres of fuel per 100 kilometres.
The Minister announced that the new model will be launched by 2010, adding that preparations will begin at once, starting with the factory overhaul.
The Italians will this year bring a portion of their investment, so we could be ready to launch the new model by the end of 2010 and thus in 2011 reach full capacity as envisaged in the contract, explained Dinkic.
The Deputy Prime Minister said there will be more work for Zastava employees than at present, announcing that on Monday he will invite representatives from the unions, factory and Kragujevac for a meeting at which he will brief them in detail about everything that was agreed upon today in Turin.
Fiat Vice-President of Communications Gilberto Ranieri stated following the meeting that the goal is to produce a minimum of 15,000 Punto vehicles in 2009.
He confirmed that the Fiat Punto produced in Serbia will not be for the Serbian market but for export to neighbouring countries, North Africa and Russia.
The launch of production in Kragujevac is the first part of the joint investment of Fiat Group Automobiles and the Serbian government, leading towards the joint company Fiat Automobiles Serbia.
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