Fiat manager hopes for Fiat 500L exports to Russia

Walter and Comm - The issue isn't that Russians don't want the cars from Serbia. The issue is that Serbia wants the cars to go to Russia DUTY FREE. Serbia is the ONLY European country with a free trade agreement with Russia (Slobo managed to secure this before the jackals got him).

Fiat tried to sneak their cars into Russia vis-a-vis Serbia, but 80% of the manufacturing was done in Turino (just like the Zastava "licensed by fiat" was a few years ago). The Serbs in Kragujevac were simply slapping together the parts being made in Italy pretty much. No many jobs weere created. The Russians said "no no, more than 60% of the car must be made in Serbia before you get duty free :)

Thus the birth of the 500L being made in Serbia with a major shift in production plants being opened in Kragujevac. The Russians don't really need more competition against their own domestic cars but said "okay, now you can sent some Fiats to Russia duty free. Because they are made in Serbia." The only issue now is how many cars. Truth be told it doesn't matter now, because the Russians managed at the end to increase the number of factories through their principle and thus increase the number of jobs and standard of living in Kragujevac.

I've been watching this issue VERY closely for almost a decade and am happy to educate you further :D

Fiat Automobili Srbija (Fiat Automobiles Serbia, FAS).

Sounds rather ridiculous if you decode FIAT abbreviation. Something like FABRICA ITALIANA AUTOMOBILI TORINO AUTOMOBILI SRBIJA In any case today Serbia enjoys green lights approach in Russia. So it’s wise to send 500L eastward. Though the Russian price will be higher I like the model and believe it has good chance. Other FIAT models but Ducato and Grand Cherokee do not meet the competition here. This is why two months ago the Canadian Sollers to have the FIAT plant in Naberezhni Chelni has won in the European Court a dumping suit against Citroen/Peugeot and Daimler-Benz.

Somehow funny. Fiat Serbia exported 80.000 cars so far to 100 countries, but for Russia a special contract is needed. As I read here a month or so ago, this contract includes that for cars exported to Russia, Serbia has to import cars from Russia.

Always amazes me, this great economic 'partner' Russia, the country Serbia imports from most, but which imports less from Serbia than Montenegro with its not even 1 mio population.

"Truth be told it doesn't matter now, because the Russians managed at the end to increase the number of factories through their principle and thus increase the number of jobs and standard of living in Kragujevac."
(Dusan, 5 July 2013 16:17)

Yes, and in the end, maybe some 1.000 of cars/year will go to Russia (under which conditions I'm curious about), while 100.000-200.000 cars are exported to 100 other countries, including the USA. And you tell me it was Russians that increased the standard of living in Kragujevac? Funny!

@Comm. Parrisson
Indeed, that's the true face of Russia... Even the loans they took from Russia some time ago, the money was borrowed on the condition they are used to buy Russian trains!! I mean seriously?!

Yes, and in the end, maybe some 1.000 of cars/year will go to Russia (under which conditions I'm curious about), while 100.000-200.000 cars are exported to 100 other countries, including the USA. And you tell me it was Russians that increased the standard of living in Kragujevac? Funny!
(Comm. Parrisson, 5 July 2013 17:35)

Initially it will be 1000 cars but that will expand to a much larger number. Laugh all you like but my people are from Kragujevac, and they say that their standard of living is improving as a direct result of the car manufacturing industry. Remember for every job in FAS it creates two outside. Why do you think Obama tried to save the US auto industry?

"Laugh all you like but my people are from Kragujevac, and they say that their standard of living is improving as a direct result of the car manufacturing industry."
(sj, 7 July 2013 00:03)

I have no doubt about that. This FIAT plant is an economic lighthouse, it attracts additional producers for car components which open in the vicinity, which is good for the whole region. Look at Slovakia and its car industry.

But the improving living standard is surely not caused of the few cars to be exported to Russia in the near or not so near future, but because of the 100.000 cars already produced and exported to the rest of the world.

Somehow funny. Fiat Serbia exported 80.000 cars so far to 100 countries, but for Russia a special contract is needed. As I read here a month or so ago, this contract includes that for cars exported to Russia, Serbia has to import cars from Russia.

Always amazes me, this great economic 'partner' Russia, the country Serbia imports from most, but which imports less from Serbia than Montenegro with its not even 1 mio population.

@Comm. Parrisson
Indeed, that's the true face of Russia... Even the loans they took from Russia some time ago, the money was borrowed on the condition they are used to buy Russian trains!! I mean seriously?!

"Truth be told it doesn't matter now, because the Russians managed at the end to increase the number of factories through their principle and thus increase the number of jobs and standard of living in Kragujevac."
(Dusan, 5 July 2013 16:17)

Yes, and in the end, maybe some 1.000 of cars/year will go to Russia (under which conditions I'm curious about), while 100.000-200.000 cars are exported to 100 other countries, including the USA. And you tell me it was Russians that increased the standard of living in Kragujevac? Funny!

Walter and Comm - The issue isn't that Russians don't want the cars from Serbia. The issue is that Serbia wants the cars to go to Russia DUTY FREE. Serbia is the ONLY European country with a free trade agreement with Russia (Slobo managed to secure this before the jackals got him).

Fiat tried to sneak their cars into Russia vis-a-vis Serbia, but 80% of the manufacturing was done in Turino (just like the Zastava "licensed by fiat" was a few years ago). The Serbs in Kragujevac were simply slapping together the parts being made in Italy pretty much. No many jobs weere created. The Russians said "no no, more than 60% of the car must be made in Serbia before you get duty free :)

Thus the birth of the 500L being made in Serbia with a major shift in production plants being opened in Kragujevac. The Russians don't really need more competition against their own domestic cars but said "okay, now you can sent some Fiats to Russia duty free. Because they are made in Serbia." The only issue now is how many cars. Truth be told it doesn't matter now, because the Russians managed at the end to increase the number of factories through their principle and thus increase the number of jobs and standard of living in Kragujevac.

I've been watching this issue VERY closely for almost a decade and am happy to educate you further :D

Fiat Automobili Srbija (Fiat Automobiles Serbia, FAS).

Sounds rather ridiculous if you decode FIAT abbreviation. Something like FABRICA ITALIANA AUTOMOBILI TORINO AUTOMOBILI SRBIJA In any case today Serbia enjoys green lights approach in Russia. So it’s wise to send 500L eastward. Though the Russian price will be higher I like the model and believe it has good chance. Other FIAT models but Ducato and Grand Cherokee do not meet the competition here. This is why two months ago the Canadian Sollers to have the FIAT plant in Naberezhni Chelni has won in the European Court a dumping suit against Citroen/Peugeot and Daimler-Benz.

Yes, and in the end, maybe some 1.000 of cars/year will go to Russia (under which conditions I'm curious about), while 100.000-200.000 cars are exported to 100 other countries, including the USA. And you tell me it was Russians that increased the standard of living in Kragujevac? Funny!
(Comm. Parrisson, 5 July 2013 17:35)

Initially it will be 1000 cars but that will expand to a much larger number. Laugh all you like but my people are from Kragujevac, and they say that their standard of living is improving as a direct result of the car manufacturing industry. Remember for every job in FAS it creates two outside. Why do you think Obama tried to save the US auto industry?

"Laugh all you like but my people are from Kragujevac, and they say that their standard of living is improving as a direct result of the car manufacturing industry."
(sj, 7 July 2013 00:03)

I have no doubt about that. This FIAT plant is an economic lighthouse, it attracts additional producers for car components which open in the vicinity, which is good for the whole region. Look at Slovakia and its car industry.

But the improving living standard is surely not caused of the few cars to be exported to Russia in the near or not so near future, but because of the 100.000 cars already produced and exported to the rest of the world.