Fiat, Kragujevac to sign deal

Fiat Vice-President Alfredo Altavilla and Kragujevac Mayor Veroljub Stevanović will sign a memorandum on strategic cooperation in Kragujevac tomorrow.

Izvor: Tanjug

Monday, 05.05.2008.

09:31

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Fiat Vice-President Alfredo Altavilla and Kragujevac Mayor Veroljub Stevanovic will sign a memorandum on strategic cooperation in Kragujevac tomorrow. Economy Minister Mladjan Dinkic announced that this memorandum would make the Turin automotive giant exempt from all local taxes in the next ten years, and provide land free of charge in the event of an expansion of production capacities. Fiat, Kragujevac to sign deal Dinkic explained that the memorandum between the city of Kragujevac and Fiat was part of the already signed Memorandum of Understanding and Joint Investment between Serbia and Fiat, under which the Turin outfit plans to assume a 70 percent holding in Zastava with an investment of EUR 700mn, with the state retaining the remaining 30 percent. Following talks yesterday with Fiat trade union leaders, the minister said that Kragujevac would receive the status of a customs free zone, not only for Zastava, but for other small and medium-sized companies, meaning import for production purposes for export without customs or VAT. Reiterating that Fiat would increase current production to 200,000 cars by the end of the year, and by the end of 2010, to 300,000, Dinkic said that the Turin company would manufacture two brand new A and B models in Kragujevac, whose international promotion is still to come, and that from January 1, customs would be halved on car imports, and completely scrapped in the next two years. The minister repeated that Fiat had come to Zastava because Serbia had signed the Stabilization and Association Agreement (SAA) with the EU. The signed SAA guaranteed customs-free car exports, which was important for Fiat, he said, adding that the Italian company had decided to produce new models at the Kragujevac plant, rather than build factories. Dinkic said that Fiat would export 95 percent of its output, and that “everyone who says that the SAA should be annulled forgets that the EU can restore tax not just on car exports, but on other products too, and that 60 percent of our imports go to EU member-states.” Signing of the memorandum of Understanding between Serbia, Fiat (FoNet, archive)

Fiat, Kragujevac to sign deal

Dinkić explained that the memorandum between the city of Kragujevac and Fiat was part of the already signed Memorandum of Understanding and Joint Investment between Serbia and Fiat, under which the Turin outfit plans to assume a 70 percent holding in Zastava with an investment of EUR 700mn, with the state retaining the remaining 30 percent.

Following talks yesterday with Fiat trade union leaders, the minister said that Kragujevac would receive the status of a customs free zone, not only for Zastava, but for other small and medium-sized companies, meaning import for production purposes for export without customs or VAT.

Reiterating that Fiat would increase current production to 200,000 cars by the end of the year, and by the end of 2010, to 300,000, Dinkić said that the Turin company would manufacture two brand new A and B models in Kragujevac, whose international promotion is still to come, and that from January 1, customs would be halved on car imports, and completely scrapped in the next two years.

The minister repeated that Fiat had come to Zastava because Serbia had signed the Stabilization and Association Agreement (SAA) with the EU.

The signed SAA guaranteed customs-free car exports, which was important for Fiat, he said, adding that the Italian company had decided to produce new models at the Kragujevac plant, rather than build factories.

Dinkić said that Fiat would export 95 percent of its output, and that “everyone who says that the SAA should be annulled forgets that the EU can restore tax not just on car exports, but on other products too, and that 60 percent of our imports go to EU member-states.”

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