Volkswagen to buy Zastava?

Daily Danas writes that Volkswagen officials met with Zastava company representatives yesterday. The daily states that a Volkswagen delegation met with Zastava and Economy Ministry officials to discuss the company’s impending privatization. Volkswagen to buy Zastava? The meeting, held behind closed doors, consisted of a presentation of the tender conditions and Zastava’s production potential to Volkswagen officials, the daily writes. “With this visit, the mystery behind ‘one large European company’ that is interest in buying the Zastava automotive factory has been revealed,” states Danas, alluding to an earlier statement from Economy Minister Mladjan Dinkic. The daily recalls that Volkswagen was interested in Zastava during the late 1980s, when it was planning to export Yugo automobiles to America, and was ready to turn Zastava into something similar to the Czech Skoda company. “These plans, however, did not come to fruition, because the Zastava administration at the time was negotiating with Fiat about forming a joint company in Kragujevac. Volkswagen then decided to go to the Czech Republic where it was able to turn Skoda into a respectable car manufacturer," the daily writes. The decision for a possible joint venture between Volkswagen and Zastava will no longer depend on the Zastava administration, but only on whether the German giant’s management believes it is worth accepting the tender conditions for the sale of the company, Danas adds.

Volkswagen to buy Zastava?

The meeting, held behind closed doors, consisted of a presentation of the tender conditions and Zastava’s production potential to Volkswagen officials, the daily writes.

“With this visit, the mystery behind ‘one large European company’ that is interest in buying the Zastava automotive factory has been revealed,” states Danas, alluding to an earlier statement from Economy Minister Mlađan Dinkić.

The daily recalls that Volkswagen was interested in Zastava during the late 1980s, when it was planning to export Yugo automobiles to America, and was ready to turn Zastava into something similar to the Czech Skoda company.

“These plans, however, did not come to fruition, because the Zastava administration at the time was negotiating with Fiat about forming a joint company in Kragujevac. Volkswagen then decided to go to the Czech Republic where it was able to turn Skoda into a respectable car manufacturer," the daily writes.

The decision for a possible joint venture between Volkswagen and Zastava will no longer depend on the Zastava administration, but only on whether the German giant’s management believes it is worth accepting the tender conditions for the sale of the company, Danas adds.