FIAT SpA will soon unveil a new car model as final preparations for its production begin in Serbia.
The former brand known as Yugo was built on licensed -yet ancient- FIAT technology, often 20 yrs old -like other communist countries like the USSR (Lada) and Poland (Polski-FIAT). FIAT has now taken control of the ruins of Yugo to produce new, low-priced FIATs in the Balkan country.
According to Serbian Deputy Prime Minister Mladan Dinkic, a new car should be rolling off the production lines on schedule in early 2011.
Speaking at the Investment Opportunities in Serbia Forum, which was attended by more than 20 Italian auto parts suppliers, he outlined how Serbia’s low-rate, skilled workforce and geographic location have made it an attractive proposition to Italy-based businesses.
Currently, there are more than 200 Italian companies employing around 18,000 people in the country. There are a number of incentives presented by the country including land and infrastructure as well as around $7,500 for every new job created.
Many of those present were FIAT suppliers and have concrete requirements to build factories to support Fiat’s operations. The company itself plans a $1.2 B investment in Serbia to produce the new model from a factory in Kragujevac.