Fiat receives 500 million euro bank loan for Serbian production

Article by Christian A., on January 31, 2011

The European Investment Bank (EIB) said that, in 2011, it will lend EUR500 million ($684 million) to a joint venture with Fiat S.p.A. in the central town of Kragujevac, Serbia.

The EIB said the loan will help modernize and expand production capacity of the Fiat Automobili Srbija (FAS) facility, which currently makes the Fiat Punto Classic model, and aid investment in civil works, equipment and machinery and infrastructure.

EIB spokesman Marko Santarelli told Reuters that the timing of the signature will depend on the Fiat Group’s investment needs.

He added that it is likely that more than one finance contract will be signed, as such investment needs some time to be implemented. FAS has a long-term goal of producing 200,000 cars annually and generating about EUR2 billion. 

Fiat has a 67 percent stake in FAS, which has absorbed Serbia's former sole car maker Zastava, while the government in Belgrade has the remaining 33 percent.

The Punto Classic model produced in Kragujevac is sold in Serbia and nearby markets. Fiat has plans to discontinue its production in Serbia.

In July 2010, a Serbian Economy Ministry official said that Fiat planned to start test production of two new small minivan models in Serbia in the second half of 2011. Code-named L0, the two small minivans will replace the Fiat Idea and Multipla. [via autonews - sub. required]

Topics: fiat, serbia

If you liked the article, share on:

Pin It

Comments

Recommended

Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market...
by - March 30, 2017
The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
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