Fiat plans to intensify production at the former Zastava Automobili factory in Serbia

Article by Christian Andrei, on April 14, 2012

Fiat plans to intensify production at the former Zastava Automobili factory in Kragujevac, central Serbia, as one of its suppliers has been granted a 20 million euros ($26 million) loan from the World Bank. A key Fiat supplier in Serbia is getting the loan in order to help revitalize the automotive industry in the country.

This plant had been where the Yugo small car was produced when the country was under Communist rule. Fiat presently produces the Punto subcompact at the plant and this is also where production of the 500L will begin this month. The loan was approved by the World Bank's private lending arm, the International Finance Corp.

The recipient of the loan is PMC Automotive, a joint venture between Italian automotive supplier CLN Group and PROMA Group. The lender said that this loan is a move by the IFC to support Serbia’s goal to revive its car industry and to create new skilled jobs. The metal-stamping factory of PMC Automotive has about 370 employees.

It is the supplier of parts for the Kragujevac plant as Fiat prepares to increase the current 20,000-car capacity of this facility to 140,000 in 2013. In the fourth quarter in Europe is when Fiat starts selling the 500L, a longer version of Fiat's retro-styled 500 minicar.

It is the replacement for the existing Idea and Multipla models found in Fiat's lineup. Starting in early 2013, the 500L will be exported to the U.S. The Kragujevac factory is a joint venture with the Serbian government, formed when Fiat took control of the defunct Zastava Automobili to become a 67% owner of Fiat Automobili Srbija.

Topics: fiat, production

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries