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The Government of the Republic of Serbia

In the service of citizens

Consolidation of car parts manufacturers network in region

Kragujevac, 19 May 2010

First Deputy Prime Minister and Minister of the Interior Ivica Dacic stated today that Serbia and the Balkans region could become very attractive for the world’s leading car manufacturers who wish to set up new production units.

Speaking at the first international fair of car parts producers in South East Europe, being held in Kragujevac, Dacic said that this region offers a unique business environment and has the potential to become an auto industry region, as it has a strong network of world standard car parts producers.

The fair in Kragujevac confirms that decentralisation is possible in Serbia and the Balkans. This local business initiative has been supported by Serbia and other Balkan countries as well as European investors, he said.

Leading names in the car industry are joining forces to respond to global challenges and this trend should be followed because the global market is as competitive as it is profitable, he said.

Countries of the Western Balkans are interesting primarily because of the once famous Zastava of Kragujevac which had a large network of partners. These companies still exist and only need to be linked once again. This fair is an excellent opportunity for achieving this goal, he said.

He said the trade show is also an opportunity for local and regional car parts manufacturers to present their products to multinational companies, noting that this will also help Serbia and other regional countries to obtain an important position in the global market.

The Minister stressed that when companies join together, their productivity increases, as well as their innovativeness and competitiveness in the international market. This will inevitably boost the regional and national economy, he noted.

Dacic stressed that the Serbian government is ready to talk with all interested stakeholders about possible forms of support, adding that it will keep implementing measures to improve economic activities and attract more foreign investment in Serbia.