Punto production to begin in March

Zastava Group CEO Zoran Radojevic says that production of the Punto model will begin in Kragujevac in March, and that an agreement will be penned next week. Radojevic, however, did not wish to divulge the details of the contract that he said he had received last night. He did, though, say that the document did not quote the number of cars to be manufactured in Kragujevac, adding that the factory’s capacities were 20,000 cars a year, with the possibility of increasing this to 40,000 with a minimum of investment. Punto production to begin in March Kragujevac Deputy Mayor Nebojsa Zdravkovic said that production of the Punto 1.8.8 in March would mark the beginning of application of the production part of the agreement signed by the government and Fiat. Zdravkovic explained that the contract between Fiat Automobiles Serbia and Zastava Auto, a factory that effectively formed part of the new company, was essential as the newly-formed Serbo-Italian factory had still not legally assumed ownership of the Kragujevac factory’s assets, and that the relevant paperwork would not be finalized until April 15. Were the company to wait until that date, production at the Kragujevac plant would not be able to start until the summer, said the deputy mayor. After meeting with Fiat Automobiles Serbia CEO Giovanni De Filippis and Economy Ministry representatives, Aleksandar Ljubic, the head of the Restructuring Center at the Privatization Agency, told journalists that all the parts for the production of the new Punto would be coming from Fiat. The level of output would be adjusted to meet demand. Ljubic said that the idea was for Zastava’s sub-contractors to begin production of the new Punto spare parts as soon as possible, after which it would no longer be necessary to import them from Turin. What mattered most was that production of the Punto 1.8.8 would be starting in March at a level no smaller than 2008, said Zdravkovic. He said that Fiat was expected to deposit EUR 200mn by March 31, as envisioned by the contract, and that production of a brand new A class model would begin in Kragujevac by 2010. The deputy mayor denied that there had been any changes of time frame in the agreement signed between Fiat and the government. Zastava workers to undergo testing Fiat Automobile Serbia CEO Giovanni De Filippis will be in Kragujevac to see Zastava workers being tested for jobs in the new company. Zastava Union President Zoran Mihajlovic told B92 that he was looking forward to De Filippis’ visit, adding that his visit was not a guarantee that the production of new automobiles stipulated by the contract signed between Fiat and the Serbian government would begin. “We expect to get an answer from him as to what Fiat is planning to do this year, what his business activities are and what we in the factory, the workers, can expect during the course of the year,” he said. “Predictions vary. The world economic crisis has hit Fiat hard as well. What is certain is that we really want to know what kind of year this will be—whether the contract will be implemented as stated during the signing, or whether it will be postponed,” Mihajlovic said. Of the total 3,800 employees, 250 will be tested today, and surveys will be taken in groups and individually up until February 26. The first group called in for testing were the factory’s security personnel, production controllers and some of the workers involved in the production of the Zastava 10 model. Under the contract signed between Fiat and Serbia, the new Fiat Cars Serbia company will take over 1,000 workers from Zastava in the first phase, and a further 1,200 in the next two phases.

Punto production to begin in March

Kragujevac Deputy Mayor Nebojša Zdravković said that production of the Punto 1.8.8 in March would mark the beginning of application of the production part of the agreement signed by the government and Fiat.

Zdravković explained that the contract between Fiat Automobiles Serbia and Zastava Auto, a factory that effectively formed part of the new company, was essential as the newly-formed Serbo-Italian factory had still not legally assumed ownership of the Kragujevac factory’s assets, and that the relevant paperwork would not be finalized until April 15.

Were the company to wait until that date, production at the Kragujevac plant would not be able to start until the summer, said the deputy mayor.

After meeting with Fiat Automobiles Serbia CEO Giovanni De Filippis and Economy Ministry representatives, Aleksandar Ljubić, the head of the Restructuring Center at the Privatization Agency, told journalists that all the parts for the production of the new Punto would be coming from Fiat.

The level of output would be adjusted to meet demand.

Ljubić said that the idea was for Zastava’s sub-contractors to begin production of the new Punto spare parts as soon as possible, after which it would no longer be necessary to import them from Turin.

What mattered most was that production of the Punto 1.8.8 would be starting in March at a level no smaller than 2008, said Zdravković.

He said that Fiat was expected to deposit EUR 200mn by March 31, as envisioned by the contract, and that production of a brand new A class model would begin in Kragujevac by 2010.

The deputy mayor denied that there had been any changes of time frame in the agreement signed between Fiat and the government.

Zastava workers to undergo testing

Fiat Automobile Serbia CEO Giovanni De Filippis will be in Kragujevac to see Zastava workers being tested for jobs in the new company.

Zastava Union President Zoran Mihajlović told B92 that he was looking forward to De Filippis’ visit, adding that his visit was not a guarantee that the production of new automobiles stipulated by the contract signed between Fiat and the Serbian government would begin.

“We expect to get an answer from him as to what Fiat is planning to do this year, what his business activities are and what we in the factory, the workers, can expect during the course of the year,” he said.

“Predictions vary. The world economic crisis has hit Fiat hard as well. What is certain is that we really want to know what kind of year this will be—whether the contract will be implemented as stated during the signing, or whether it will be postponed,” Mihajlović said.

Of the total 3,800 employees, 250 will be tested today, and surveys will be taken in groups and individually up until February 26.

The first group called in for testing were the factory’s security personnel, production controllers and some of the workers involved in the production of the Zastava 10 model.

Under the contract signed between Fiat and Serbia, the new Fiat Cars Serbia company will take over 1,000 workers from Zastava in the first phase, and a further 1,200 in the next two phases.