Fiat cuts 500L production in Serbia on market slowdown image

Fiat announced that it has temporarily stopped production at its plant in Serbia. The factory started building Fiat’s 500L small minivan midway through 2012.

The Italian carmaker stated that “the causes of this temporary setback are external and related to situation in the European and global automotive markets.”

While the car company did not say for how long the production would be halted, Serbian media says that the factory will be idling production from September 5 to September 9. The plant situated in Kraguajevac, Serbia, is a €1billion joint venture and it is 67% owned by Fiat and 33% percent by the Serbian state.

In 2013, Fiat was the country’s biggest exporter, with revenues of €1.5 billion, which translates to almost 2 billion US dollars. Fiat is not the only car manufacturer recurring to this move as Ford has announced it will halt its production for nine days this September at its Romanian plant. The American car brand also says that the European market is volatile and that it is still trying to recover from the previous economic crisis. The production halting “trend” has been also joined by Volkswagen, which decided to cut production at a Russian plant, and also by Mitsubishi as the automaker chose to suspend vehicle production at its Venezuela factory.

By Gabriela Florea