Fiat expected to deposit capital

Fiat is expected to pay its initial EUR 100mn on Tuesday to the Fiat Automobiles Serbia factory account, Kragujevac Mayor Veroljub Stevanovic said. He told journalists that Kragujevac has regulated all issues related to property. Fiat expected to deposit capital He said that industrial and free customs zones in Kragujevac will have to be organized, namely the Korman Polje zone, which will be handed over to Fiat in six months. Stevanovic said that he will be heading the team that will be following the realization of equipping Korman Polje in order for all obligations to the Italian company to be fulfilled by the given deadline. The free zone was set up by the contract for joint investments between Fiat and the Serbian government for producing Fiat automobiles in Kragujevac-based Zastava manufacturer. Government officials and Fiat signed an annex on December 24 for investing in the joint company, which would make Zastava part of the Italian company. Economy Minister Mladjan Dinkic said that Fiat has given order for payment of the remaining EUR 98mn to the company account, reminding that EUR 2mn was paid earlier. He said that once the sum is paid, the state will transfer Zastava’s property to the joint company. Fiat Group Vice-President Alfredo Altavilla said that the EUR 100mn will be paid by the end of the year. The annex calls for investments of EUR 700mn in new equipment and the modernization of the factory for a capacity of 200,000 vehicles per year, and the production of two new models of automobiles in Kragujevac, which are expected to be begin production in the second half of 2011. The new models will first be presented at one of the largest European car fairs, it was also announced. One model is expected to be in the B-class, while the other would fall under the C-class category, according to reports. Fiat intends to produce cars in Kragujevac that will be exported to the European and U.S. markets. The government and Fiat signed a contract for join investment in the Zastava factory on September 29, 2008. The Fiat company will have 67 percent of the capital in the new joint firm, while the Serbian government will have 33 percent. The company was founded on October 14, 2008.

Fiat expected to deposit capital

He said that industrial and free customs zones in Kragujevac will have to be organized, namely the Korman Polje zone, which will be handed over to Fiat in six months.

Stevanović said that he will be heading the team that will be following the realization of equipping Korman Polje in order for all obligations to the Italian company to be fulfilled by the given deadline.

The free zone was set up by the contract for joint investments between Fiat and the Serbian government for producing Fiat automobiles in Kragujevac-based Zastava manufacturer.

Government officials and Fiat signed an annex on December 24 for investing in the joint company, which would make Zastava part of the Italian company.

Economy Minister Mlađan Dinkić said that Fiat has given order for payment of the remaining EUR 98mn to the company account, reminding that EUR 2mn was paid earlier.

He said that once the sum is paid, the state will transfer Zastava’s property to the joint company.

Fiat Group Vice-President Alfredo Altavilla said that the EUR 100mn will be paid by the end of the year.

The annex calls for investments of EUR 700mn in new equipment and the modernization of the factory for a capacity of 200,000 vehicles per year, and the production of two new models of automobiles in Kragujevac, which are expected to be begin production in the second half of 2011.

The new models will first be presented at one of the largest European car fairs, it was also announced.

One model is expected to be in the B-class, while the other would fall under the C-class category, according to reports.

Fiat intends to produce cars in Kragujevac that will be exported to the European and U.S. markets.

The government and Fiat signed a contract for join investment in the Zastava factory on September 29, 2008.

The Fiat company will have 67 percent of the capital in the new joint firm, while the Serbian government will have 33 percent.

The company was founded on October 14, 2008.