Fiat completes initial investment for the joint venture with Serbia
By Andrew C., 26 Aug, 2010. 0 Comments
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Fiat S.p.A. has completed its initial investment for the joint venture with Serbia by paying a 100 million euro ($143.9 million) payment on Tuesday. The payment of 2 million euros earlier this year and the 98 million paid recently establishes Fiat's business in Serbia that the government hopes will be worth 2 billion euros a year. Serbia's Deputy Prime Minister in charge of economy, Mladjan Dinkic, said that this payment grants Fiat a 67% stake in Fiat Automobili Srbija, which has absorbed Serbia's former sole car maker Zastava. The government in Belgrade will control the remaining 33%. It was in 2008 that Serbia and Fiat agreed to a $1 billion venture; however, Fiat delayed its investment for more than a year due to the global financial crisis. The government provided subsidies until the business began. For a period exceeding one year, Zastava assembled Fiat Puntos for the markets of Serbia and the Bosnian Serb Republic. In 2009, 15,000 Fiat Punto cars were assembled, worth 27 million euros.
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