Zastava unions wary of new Fiat deal

Zastava Cars and Zastava Trucks unions are asking for an explanation regarding the announcements that they would be joining the newly formed Fiat Cars Serbia. “We are worried about the fate of our companies and we are asking that we be informed in time on the future moves related to the strategic ties, and the status changes which are being announced in Zastava Group, so that we could avoid misunderstandings in the future,” the unions wrote in a letter to the Economy Ministry. Zastava unions wary of new Fiat deal President of the factory's independent union Zoran Mihajlovic told Tanjug that he has information that the companies currently undergoing restructuring – Zastava Inpro, Zastava Horticulture and Zastava Auto – will join with the Zastava Vehicles Group, while car and truck plants have not been mentioned. “This means there's terrain preparation to have Zastava Cars handed over to Fiat without a single euro of investment, and by means of declaring bankruptcy for Zastava Vehicles Group,” Mihajlovic said. On the other side, newly-appointed President of the Zastava Vehicles Group board of directors Aleksandar Ljubic – who is a special advisor to Economy Minister Mladjan Dinkic – said that “the state will not be giving away anything to the Turin factory”. “Every part of the agreement with Fiat is being implemented and it is out of the question for Zastava to declare bankruptcy,” Ljubic said. Dinkic announced in July before visiting the factory that an annex strategic agreement will be signed in September between Serbia and Fiat, which will give precise plans for investments in Zastava Cars, "and what model, other than the Punto, will be produced in Kragujevac next year".

Zastava unions wary of new Fiat deal

President of the factory's independent union Zoran Mihajlović told Tanjug that he has information that the companies currently undergoing restructuring – Zastava Inpro, Zastava Horticulture and Zastava Auto – will join with the Zastava Vehicles Group, while car and truck plants have not been mentioned.

“This means there's terrain preparation to have Zastava Cars handed over to Fiat without a single euro of investment, and by means of declaring bankruptcy for Zastava Vehicles Group,” Mihajlović said.

On the other side, newly-appointed President of the Zastava Vehicles Group board of directors Aleksandar Ljubić – who is a special advisor to Economy Minister Mlađan Dinkić – said that “the state will not be giving away anything to the Turin factory”.

“Every part of the agreement with Fiat is being implemented and it is out of the question for Zastava to declare bankruptcy,” Ljubić said.

Dinkić announced in July before visiting the factory that an annex strategic agreement will be signed in September between Serbia and Fiat, which will give precise plans for investments in Zastava Cars, "and what model, other than the Punto, will be produced in Kragujevac next year".