Fiat is to increase its Serbian spend by EUR240m (US$311m) as it looks to introduce new model production in the Balkan state.
The increase will bring Fiat’s investment for the Zastava plant at Kragujevac, 140km south east of Belgrade, to EUR944m as Serbian deputy prime minister Mladjan Dinkic outlined.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“He [Dinkic] confirmed the [Fiat CEO] Marchionne statement,” a Fiat Automobili Serbia spokesman told just-auto from Serbia. “The investment is a bit higher than previously thought due to the fact the models will be more extensive.
“Originally the project was to build one A [segment] model – a small city car – now the plans are different – we will produce new versions of the Fiat Idea and Lancia Musa. That investment will be for production at the end of 2011.
The spokesman added the 1.4sq m Kragujevac plant was being renovated from its “socialist” past origins. The site is Fiat’s only current factory in Serbia.
And in stark contrast to its domestic market of Italy, the automaker appears to be enjoying smooth industrial relations with its Serbian workforce.
“We have had no problems with the Serbian unions – not even one hour of strikes,” said the spokesman. “It is a kind of nice honeymoon for the moment.”
Despite Fiat’s optimism, its main union Fiom, recently held talks with the Confederation of Autonomous Trade Unions of Serbia (KATUS), with the latter noting it was “full of suspicions” as to how Italian management would proceed.
