Fiat, Serbia ink deal to build cheaper version of the 500L for domestic market

Article by Christian A., on April 1, 2013

A subsidy deal was made between Serbia and Fiat to build a more affordable version of the 500L minicar for the domestic market, according to the Blic newspaper. The report, which cited Finance Minister Mladjan Dinkic, said that under the agreement, the Serbian unit of Fiat, which is based in the central city of Kragujevac, will build a version of 500L for 10,900 euros ($14,200) or about 3,000 euros lower than its regular price.

This plant, which is a 1 billion euro ($1.3 billion) joint venture that’s 67% owned by Fiat and 33% by Serbia, will utilize a one-time government subsidy from this year’s budget for 1,400 new hires this year and next to make the cheaper model. The Fiat 500L, a stretched version of the Fiat 500 minicar, is already built in Serbia to be exported.

Dinkic told Blic that Fiat has made a promise to create 1,400 new jobs. For this, the company will provide subsidies of 10,000 euros for every new worker, It has also agreed that this money will be used to build a variant of the 500L for the Serbian domestic market. The Finance Ministry has yet to comment on this report. The Serbian government subsidizes direct foreign investments to aid it in emerging from recession and to fight unemployment, which presently stands at around 25%.

Dinkic said last week that subsidies will be disbursed on the condition that Fiat secures local banks and leasing companies to provide five-year deals at 3% a year in euros, which is the currency preferred in the European Union candidate country.

Serbia predicts that there’s a 25% increase in the value of its exports this year to about 11 billion euros ($14 billion) with the automotive industry making up around 20% of the total, which include output from the Fiat plant. Antonio Ferara, the CEO of Serbia's Fiat plant, said earlier this month that the company intends to produce between 110,000 and 180,000 500Ls for the European and the U.S. markets in 2013.

Aside from premium comfortability and flawless functionality, the all-new Fiat 500L conveys the etiquette of Italian methodology with a distinguishable appearance and translates Fiat’s uncanny skill of conceiving and designing vehicles which are state-of-the-art both in substance and in form. Substance turns into the idea of “space-efficiency” that separates all of the most ingenious Fiats in history.

As the 600 Multipla became the leader of the idea of compact people carrier, the 500L is the fresh Fiat rendition of the Simply More ideology applied to the Multispace concept. The all-new Fiat 500L revolutionizes the category of compact vehicles for the modern family by producing some of the 500’s eloquent details in ground-breaking forms.

The distinguishable characteristics of the Fiat 500L, represented by a body design that eliminated edges and taut line to prefer “gentler” forms, makes a reference to a “placid”, non-aggressive object that exudes charisma and forecasts a more well-balanced design for the urban terrain and environment.

When inspecting the all-new 500L, we noticed that its iconic character, specifically the personality and force of the vehicle’s design, comprises an actual matrix of the project. Enhanced within the setting of the all-new Fiat B segment platform, the Fiat 500L is a pioneering vehicle that tackles a more varied and expanded customer base and that points at establishing higher standards in terms of premium on-board space and comfort. The product is a highly efficient vehicle able to “converse” with the user and provide top-notch service over the years.

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Topics: fiat, fiat 500l, europe

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