|
Post by radovic on Apr 30, 2008 10:31:40 GMT -5
Italy's Fiat Buys Serbian Car Factory Email a friend Save article Print article Increase text size Decrease text size 30 April 2008 Belgrade _ Italian carmaker has bought a majority stake in Serbia’s only vehicle manufacturer. As per the deal agreed with Serbia’s caretaker government, Fiat will take up a 70% stake in Zastava, while the government will retain the remaining 30%. The Memorandum on understanding, strategic partnership and joint investment has to be ratified by the new Serbian parliament after the May 11 snap elections. Top Serbian leaders, including President Boris Tadic, Economy Minister Mladjan Dinkic and Finance Minister, Mirko Cvetkovic, attended the final talks with the Fiat Vice President Alfredo Altavilla. Altavilla, the second Fiat official to come to Serbia in 55 years, said he was happy with the effectiveness of negotiations which lasted only a month. His predecessor, Gianni Agnelli, visited the Zastava plant in Kragujevac during the rule of the late Josip Broz Tito in the then Federal Republic of Yugoslavia, when Fiat and Zastava struck the first deal. “Welcome back home,” Tadic told Fiat’s current bosses. He added that such foreign direct investment was what Serbia needed the most in its bid to revive the economy. The signing of the Memorandum comes only a day after Belgrade pro-European leaders signed the Stabilisation and Association Agreement, SAA, with the European Union Foreign Ministers in Luxembourg. The deal is widely seen as the first step to EU membership. Read more: www.balkaninsight.com/en/main/news/9742/Tadic said much more investment was expected. Wednesday’s deal stipulates that Fiat will start a production of a brand new model of an A type car by the end of next year. Annual production is planned to reach 200,000 vehicles. In the second phase by the end of 2010, the plan envisages the production of a new B car type and an annual output of up to 300,000 cars. That would be a big increase in Zastava production which in 2007 stood at 12,350 vehicles.
|
|
|
Post by radovic on Apr 30, 2008 10:32:15 GMT -5
^ In case radicals win this investment is not at risk, since they declared they support Fiats investing in Serbia.
|
|
|
Post by radovic on Apr 30, 2008 10:41:42 GMT -5
Fiat, Zastava seal strategic partnership 30 April 2008 Today's signing (FoNet)
Economy Minister Mlaðan Dinkiæ and Fiat Vice-President Alfredo Atavilla have signed a memorandum on understanding, strategic cooperation and joint investment.
The memorandum, signed in the presence of President Boris Tadiæ, gives the Italian automotive giant a 70 percent majority holding in Zastava, with the state retaining the remaining 30 percent.
Dinkiæ said that the partnership would bring much more investment than Russia planned for the purchase of the Serbian Oil Industry (NIS).
Over the next two years, Fiat plans to launch production of two completely new models at the Kragujevac factory, while also intensifying output of the Punto, which is already being assembled there.
Although it was originally announced that Fiat's investment would be some EUR 300mn, that figure will now be over double that, announced the economy minister.
This is a very important day for Fiat as well, because it marks the company’s return to Serbia, with which it had good cooperation for 50 years, said Altavilla.
“It is important that this agreement was signed a day after Serbia signed the Stabilization and Association Agreement (SAA) with the European Union. That is very important for Serbia, for Fiat, and for our cooperation,” he said.
Tadiæ agreed with the Italian guests, stressing that Serbia had many politicians who spoke about history and patriotism, but did not have any idea of how to develop the country any further.
“I believe that only policies that support further development confirm the existence of history. I only believe in policies that lead to investment and are not just empty words,” he said.
“I only believe in policies that create new jobs and new opportunities for people and the country, and are not the products of empty threats,” the president stressed.
Besides Fiat, the other company interested in Zastava, Volkswagen, is also expected to enter the Serbian market. The company is interested in building a new automotive factory on the outskirts of Kragujevac, Dinkiæ said.
He added that the third company interested in the Serbian auto-industry, Chinese FAV, had shelved plans to build a factory near Vranje. Earlier, Dinkiæ said that if the new parliament failed to ratify the Stabilization and Association Agreement (SAA), it would mean the collapse of the “contract of the decade” with Fiat, adding that the SAA signing had been the signal the Italian company had been waiting for before putting pen to paper.
“Fiat is interested in manufacturing in Kragujevac, not just assembling, completely new models, with a commitment to increase production in the first year to about 90,000 vehicles, and to 150,000 a year in the second year,” the minister told B92.
Fiat is to apply the model of united investment in Zastava, with the Serbian government as a minority shareholder and the Italian company as the majority owner. As part of the deal, Fiat would be obliged to increase the current production of 12,350 cars in 2007 to about 50,000 in the first nine months after signing, which needed to be confirmed by the government, he said.
According to the deal, in the next two years, Fiat would increase car production at Zastava to about 150,000 a year, Dinkiæ said, adding that a large percentage of those cars would be exported to the EU market, meaning that Serbia would have to scrap customs duty on cars exported to the EU.
Fiat’s arrival means the revival of the domestic metal industry and the arrival of foreign manufacturers for spare parts production, which will not only be located in Kragujevac, but in other Serbian towns, said the minister.
“It will not only be a car factory, component manufacturers come hand-in-hand with this, which means jobs for a large number of people in the metals industry. They will not all be in Kragujevac, we will ask for, say, electronics to be located in Niš, and anywhere else where there is an available workforce,” Dinkiæ explained.
|
|
Kralj Vatra
Amicus
Warning: Sometimes uses foul language & insults!!!
20%
Posts: 9,814
|
Post by Kralj Vatra on Apr 30, 2008 11:39:45 GMT -5
GREAT!!!!!!!!!!!!
|
|
|
Post by Novus Dis on Apr 30, 2008 12:40:00 GMT -5
Well I suppose an Italian will care more about the welfare of Serbian workers then a Serbian will.
|
|
Kralj Vatra
Amicus
Warning: Sometimes uses foul language & insults!!!
20%
Posts: 9,814
|
Post by Kralj Vatra on Apr 30, 2008 12:55:52 GMT -5
Well I suppose an Italian will care more about the welfare of Serbian workers then a Serbian will. Car manufacturing, goes from plain mech. engineering to clothes industry, to metal heavy industry, to services, to banking, to elect. engineering, to programming (imagine re-flashing the yugo chip in order to increase the boost level!!!), to after market programms, etc.... The whole economy will start moving. But thats not the most important. The most important is that Serb brands will re-establish their name, and be recognizable again. Then Serb meat, Serb milk, Serb pumpers, Serb medicines, Serb chemicals will not sound so bad any more. That's simply the best news i've heard for a long long time.
|
|
Kralj Vatra
Amicus
Warning: Sometimes uses foul language & insults!!!
20%
Posts: 9,814
|
Post by Kralj Vatra on Apr 30, 2008 13:00:26 GMT -5
Also i wonder what Canak will be claiming, when Kragujevac will be the new Serbia's "Krava Muzara"! LOL!!
|
|
|
Post by Novus Dis on Apr 30, 2008 13:09:00 GMT -5
Car manufacturing, goes from plain mech. engineering to clothes industry, to metal heavy industry, to services, to banking, to elect. engineering, to programming (imagine re-flashing the yugo chip in order to increase the boost level!!!), to after market programms, etc.... The whole economy will start moving. But thats not the most important. The most important is that Serb brands will re-establish their name, and be recognizable again. Then Serb meat, Serb milk, Serb pumpers, Serb medicines, Serb chemicals will not sound so bad any more. That's simply the best news i've heard for a long long time. It would be best if the Serbian government took control of the market and raised the price for cars as to encourage the local economy instead of hoping that foreigners will fix everything.
|
|
Kralj Vatra
Amicus
Warning: Sometimes uses foul language & insults!!!
20%
Posts: 9,814
|
Post by Kralj Vatra on Apr 30, 2008 14:16:47 GMT -5
Sorry if i am missing smth, but right now even the prefix "serb..." brings disgust to the face of the majority of the international consumers. How would the government alone solve the fact that the western mafia has excluded serbia from any form of international transactions??
Also please elaborate on your proposition: How would raising prices of cars (which cas btw?) enhance local economy?? 1lt milk at predejane hotel costs 1 euro, the same price as in Oxford St in London. Do you think raising prices is that effective?
|
|
|
Post by Novus Dis on Apr 30, 2008 15:14:32 GMT -5
Sorry if i am missing smth, but right now even the prefix "serb..." brings disgust to the face of the majority of the international consumers. How would the government alone solve the fact that the western mafia has excluded serbia from any form of international transactions?? Also please elaborate on your proposition: How would raising prices of cars (which cas btw?) enhance local economy?? 1lt milk at predejane hotel costs 1 euro, the same price as in Oxford St in London. Do you think raising prices is that effective? Miners, woodcutters and farmers would sell raw materials to the Serbian government who would determine the price of the raw materials and sell it to manufacturers who would sell the finished product to the Serbian government who would determine the price of the finished product and sell it to the consumers. And the Serbian government would sell all surplus to other countries for foreign currency which will be used to pay off debt and to fill in any resource shortfalls until Serbia gets a high GDP and a self sufficient economy. If the Serbian government eliminates taxes and raises prices (under my economic theory) for cars then it gives financial incentive to car producers to make more cars or start businesses because then they would be making a larger profit.
|
|
|
Post by radovic on Apr 30, 2008 17:30:32 GMT -5
Car manufacturing, goes from plain mech. engineering to clothes industry, to metal heavy industry, to services, to banking, to elect. engineering, to programming (imagine re-flashing the yugo chip in order to increase the boost level!!!), to after market programms, etc.... The whole economy will start moving. But thats not the most important. The most important is that Serb brands will re-establish their name, and be recognizable again. Then Serb meat, Serb milk, Serb pumpers, Serb medicines, Serb chemicals will not sound so bad any more. That's simply the best news i've heard for a long long time. It would be best if the Serbian government took control of the market and raised the price for cars as to encourage the local economy instead of hoping that foreigners will fix everything. Zastava is synominous with s**tty quality cars in Serbia. The government has been managing Zastava and since Oct 5, 2000 all they've accomplished is to wait too long to stop manufacturing s**tty Yugo's and failing at least 5 times before this to sell Zastava. Furthermore. The government tried this at leat twice. Let's just say it failed. Not only that but under government management Zastava produced too few cars for such an attempt to be practical. Here's a rendering of one of the Fiat models that might be produced at Kragujevac: What makes this deal especially appealing is that unlike other deals this one basically plans to do to Zastava what VW did to Skoda.
|
|
|
Post by radovic on Apr 30, 2008 17:40:05 GMT -5
According to another article, 95% of the cars will be for export.
"Fiat" and Serbia to sign Agreement on strategic partnership 30. April 2008. | 10:27
Tanjug
"Fiat" offers production of 150,000 automobiles in two years, 95% of which would be exported to European market.
Minister of Economy and Regional Development, Mlaðan Dinkiæ, stated that the negotiations with Italian "Fiat" were in final phase and that the agreement on strategic partnership would be signed with that company in few days.
- That will be the Agreement on Strategic Partnership between "Fiat" and Republic of Serbia, which will be signed by me, and the new Government should verify it - said Dinkiæ.
He announced that the highest delegation of "Fiat" would visit our country today (April 29, 2008).
Dinkiæ said that ''Fiat'' planned to start production of redesigned "fiæa" in Kragujevac.
- Another 50,000 automobiles should be produced in the first few months and then "Fiat" would start production of brand new model - said Minister Dinkiæ.
According to his words, production in "Zastava" now amounts to 10,000 automobiles, while "Fiat" offers production of 150,000 automobiles in two years, 95% of which would be exported to European market.
|
|
|
Post by radovic on Apr 30, 2008 17:47:53 GMT -5
More good news, the value of Zastava's investment is 700 million euros.
FIAT to invest 700 million euros in Serbia Posted : Wed, 30 Apr 2008 10:49:04 GMT Author : DPA Category : Business News Alerts by Email click here ) Create your own RSS Business News | Home Belgrade - Italian car maker FIAT and Serbia's Zastava automobiles Wednesday signed an agreement on forming a joint company in which the Italian firm will own majority of stakes. FIAT's vice president Alfredo Altavilla and Serbian Economy minister Mladjan Dinkic signed in Belgrade a memorandum under which FIAT will invest 700 million euros in the factory and own 70 per cent of the shares, while Serbia will invest 100 million euros and own 30 per cent.
FIAT plans to start manufacturing new class A model by 2009 with a production of 200,000. By 2010, FIAT should also start production of a class B model which would boost entire production in Zastava to 300,000 vehicles a year.
FIAT and Zastava began their cooperation in 1950s with the production of Fiat 500 car model. Around million of these automobiles were manufactured in Zastava between 1955 and 1985.
|
|
|
Post by radovic on Apr 30, 2008 17:58:22 GMT -5
Car manufacturing, goes from plain mech. engineering to clothes industry, to metal heavy industry, to services, to banking, to elect. engineering, to programming (imagine re-flashing the yugo chip in order to increase the boost level!!!), to after market programms, etc.... The whole economy will start moving. But thats not the most important. The most important is that Serb brands will re-establish their name, and be recognizable again. Then Serb meat, Serb milk, Serb pumpers, Serb medicines, Serb chemicals will not sound so bad any more. That's simply the best news i've heard for a long long time. It would be best if the Serbian government took control of the market and raised the price for cars as to encourage the local economy instead of hoping that foreigners will fix everything. Instead of doing this may be they should have bought domestic. The government always claimed to want to help Zastava but the government never bought anything from Zastava. Bwlow is just one example from 2001: Unions - Auto Industry: Money to Peugeot instead of Zastava KRAGUJEVAC, November 09, 2001. -- The management and the labour union of the Zastava trucks factory expressed its dissatisfaction over the Serbian Interior Ministry's decision to purchase 120 vehicles from the French Peugeot instead of Zastava products. General manager Zivadin Marjanovic told B92 that the company lost a job worth some two million dollars when the Ministry turned down its offer. "We received an official letter from the Interior Ministry saying they have a document from the Yugoslav Chamber of Commerce proving that no one in Yugoslavia manufactures the kind of vehicles they need, so they had to opt for import. That is not true - we make them. We even mastered the manufacture of police vans a few years back, we invested in this project, and now they are doing business with Peugeot. In this whole confusion, disaster, we are helping the French industry instead of our own", said Zivadin Marjanovic, noting the police are financed by taxpayers. Source: B92
|
|
Kralj Vatra
Amicus
Warning: Sometimes uses foul language & insults!!!
20%
Posts: 9,814
|
Post by Kralj Vatra on May 1, 2008 1:24:44 GMT -5
It would be best if the Serbian government took control of the market and raised the price for cars as to encourage the local economy instead of hoping that foreigners will fix everything. Zastava is synominous with s**tty quality cars in Serbia. The government has been managing Zastava and since Oct 5, 2000 all they've accomplished is to wait too long to stop manufacturing s**tty Yugo's and failing at least 5 times before this to sell Zastava. Furthermore. The government tried this at leat twice. Let's just say it failed. Not only that but under government management Zastava produced too few cars for such an attempt to be practical. Here's a rendering of one of the Fiat models that might be produced at Kragujevac: What makes this deal especially appealing is that unlike other deals this one basically plans to do to Zastava what VW did to Skoda. Anyways, we had a small zastava, 750cc, and it was not bad at all. Todays, in Serbia, Balkans most villagers like BMWs, Mercedes, Audis, while in Greece, some ppl go even further with over tuned subarus and mitsubishis. In other words, the average balkanian wants power and show off. However the average man lives on dept. Anyways, Will this model in the photo be branded as Zastava? LOL!
|
|
|
Post by Novus Dis on May 1, 2008 1:32:37 GMT -5
Zastava is synominous with s**tty quality cars in Serbia. The government has been managing Zastava and since Oct 5, 2000 all they've accomplished is to wait too long to stop manufacturing s**tty Yugo's and failing at least 5 times before this to sell Zastava. Furthermore. The government tried this at leat twice. Let's just say it failed. Not only that but under government management Zastava produced too few cars for such an attempt to be practical. Here's a rendering of one of the Fiat models that might be produced at Kragujevac: What makes this deal especially appealing is that unlike other deals this one basically plans to do to Zastava what VW did to Skoda. Zastava is of less quality because there is no competition. What Serbia needs is more local car companies which can only be had if people see profit in opening up more companies. They can only see profit if my economic theory is put into place.
|
|
|
Post by radovic on May 1, 2008 15:52:02 GMT -5
Zastava is synominous with s**tty quality cars in Serbia. The government has been managing Zastava and since Oct 5, 2000 all they've accomplished is to wait too long to stop manufacturing s**tty Yugo's and failing at least 5 times before this to sell Zastava. Furthermore. The government tried this at leat twice. Let's just say it failed. Not only that but under government management Zastava produced too few cars for such an attempt to be practical. Here's a rendering of one of the Fiat models that might be produced at Kragujevac: What makes this deal especially appealing is that unlike other deals this one basically plans to do to Zastava what VW did to Skoda. Zastava is of less quality because there is no competition. What Serbia needs is more local car companies which can only be had if people see profit in opening up more companies. They can only see profit if my economic theory is put into place. Serbia is too small of a country to have more then 1 car manufacturer. France has 8 times more people at it can barely support 2, Germany can suppot a few it has 10 times more people, Italy has 8 times more people and it has 1 major manufacturer and the rest are small luxury car makers. Selling the company to Fiat was wise.
|
|
|
Post by Novus Dis on Jun 20, 2008 3:02:19 GMT -5
Serbia is too small of a country to have more then 1 car manufacturer. France has 8 times more people at it can barely support 2, Germany can suppot a few it has 10 times more people, Italy has 8 times more people and it has 1 major manufacturer and the rest are small luxury car makers. Selling the company to Fiat was wise. At the beginning of the 1920s, America had over 300 car companies and now it has less then 5. This has less to do about how many companies a country can support and more about centralizing the economy so that power is in the hands of fewer and fewer people (or in this case, to foreigners).
|
|