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]

If you liked the article, share on:

Topics: fiat, serbia

Comments

Recommended

Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 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