Automomotive
FIAT, Italy
Fiat Automobili Srbija (FAS) was established on the 29th of September 2008 by a joint venture agreement between Fiat Group Automobiles (67%) and the Republic of Serbia (33%).
Based on the subsequent agreement, signed on the 29th of December 2009, the Government handed over to FAS the ownership of the land and the property of Zastava plant in Kragujevac, as well as a building in Belgrade.
In return, Fiat Group will invest 940 million EUR in the Serbian Automotive Industry. Starting from February 1st, 2010, FAS has already employed 1,000 workers.
During the first ten-month period, FAS has produced 16,000 units of Punto Classic, positioning itself as the leader in the national market with 39% of the total share and 60% of the B segment car sales.
In October 2010, the production increased by 30,000 export-oriented units. Contingents have already been distributed to Bosnia and Herzegovina, Ukraine, Egypt and Morocco.
Simultaneously, FAS started the restoration of plant facilities stretching across 1,400,000 square meters. The scope of work encompasses the renovation of buildings, the installment of new utilities and new equipment. This ambitious project will continue to be the focal point of activities for the following period.
Starting from 2011, FAS will implement modern machinery intended for production of two new car models (Fiat ‘Idea' and Lancia ‘Musa') projected to reach the global market with 200,000 units annually.
Important part of the above mentioned agreement is the establishment of a 67-hectar supplier park in Koroman polje, which will provide components to the plant and potentially contribute to increased production for export. From the infrastructural point of view, the Government and the local authorities are contributing to this Greenfield investment by improving railway and road conditions and building a connection with ‘Corridor 10.'
