Fiat Automobiles Serbia Reviving Automotive Industry - .Fiat Automobiles Serbia Reviving Automotive

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  • Fiat Automobiles Serbia

    Reviving Automotive Industry

    Mr. Vladimir Tomic

    Head of FDI Department

    Serbia Investment and Export Promotion Agency

    Jun 2010

  • Presentation Outline

    The History of Zastava Automobili

    How to Privatize a Huge Company?

    Agreement with Fiat Group

    Effect of Global Economic Crises 2009

    The Revival on Plans in 2010

    Suppliers Opportunities

    Cooperation Fiat - SIEPA

  • The History of Zastava Automobili

    First production of trucks

    Kragujevac 1939

    Zastava starts assembling

    Fiat cars 1954

    Zastava releases first semi-

    own design 1971

    Zastava production peaks

    1989 250,000 cars

    Zastavas production

    diminishes to 20,000 during

    90es

    State invests some 10

    million eur in modern

    assembly line 2005

    1939

    1954

    1965

    1971

    1988

    2005

  • How to Privatize a Huge Company?

    The 14,000 employees producing 24,000 cars

    Zastava Automobili

    Zastava Kamioni

    Zastava Specijalni Automobili

    Zastava Elektro

    Zastava PES

    Zastava Livnica

    Zastava Kovacnica

    Zastava Tapacirnica

    Zastava Auto Delovi

    Zastava Masine.

  • Agreement With Fiat Group

    28. September 2008.

    Fiat Group Serbia 67% - 33% JV

    Fiat investment 700 mil EUR

    Government incentive 200 mil EUR (cash, credit, land, tax)

    2,400 employees

    Planned production over 200,000 cars

  • Fiats Reasons

    SKILLED WORKFORCE

    GOVERNMENT SUPPORT

    GREEN FIELD FOR SUPPLIERS PARK

    LOCAL PRODUCTION

    CLOSE TO CORRIDOR X

    ASIDE EUROPEAN UNION PLANT LOCATION

    LOCAL MARKET RECONFIRM LEADERSHIP

    WITH NEW MODELS

    EXPORT MARKETS SERBIA EXCHANGE AGREEMENTS

    WITH CENTRAL AND EASTERN

    EUROPEAN COUNTRIES

  • The Effect of Global Economic Crises in 2009

    Postponement of plans

    Production equipment for other Zastava cars was removed

    Fiat concentrated on worker training world class

    manufacturing standards

    Production of 5,000 Punto Classic rose to 16,000 per year

    Finally, in December 2009 first 100 million EUR!

  • The Revival of Plans in 2010

    1,4 million m2 area

    51 buildings

    350,000 m2 covered surface

    2010 2012

    39% 28%

    161% 108%

    200

    100

    40

    60

    20

    80

    120

    140

    160

    180

  • Supplier Opportunities

    Dashboard

    IP crossbeam

    Door Panel

    Seat Assembly

    Tire Assembly

    Front & Rear Painted Bumper

    Exhaust assembly

    Suspension

    W iring Harness

    Stamping and Welding

  • Supplier Park

  • Fiat SIEPA Cooperation (Belgrade 25th May 2010)

  • Fiat SIEPA Cooperation (Belgrade 25th May 2010)

  • Fiat SIEPA Cooperation (Belgrade 25th May 2010)

  • Automotive Industry State Strategy

  • Thank you for your attention

    Mr. Vladimir Tomic

    Head of FDI Department

    Serbia Investment and Export Promotion Agency

    vladimir.tomic@siepa.gov.rs

    www.siepa.gov.rs

    mailto:vladimir.tomic@siepa.gov.rshttp://www.siepa.gov.rs/

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