Fiat has invested 1 billion euro in Kragujevac site, representing Serbia’s biggest ever industrial investment.
Thirteen years ago the Kragujevac site was destroyed by Nato bombs, now, thanks to Fiat’s investment which began in 2010, the plant was reopened in April 2012. Fiat Automobiles Serbia, Fiat’s JV in the country, expects to manufacture 28,000 Fiat 500L units by the end of 2013. The plant’s total capacity is 186,000 units annually, but the market conditions will be the ones to decide how fast will production ramp up.
The automaker said that the vehicles manufactured at the Kragujevac plant will be exported to more than 100 countries and beginning this year Fiat will expand the range of models produced here. Some of the most important factors which stood behind this investment were Fiat’s historic presence in this country, as well as the existence of a local supply chain.
Antonio Cesare Ferrara, FAS chairman and chief executive, said that the Serbian government’s participation in the JV, the tax breaks, incentives and training it offered, also played an important role in this investment. Fiat will also begin manufacturing the Punto subcompacts again later this year, aftr production was suspended in 2011 as the company was preparing for the 500L.