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
Fiat’s 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
Thank you for your attention
Mr. Vladimir Tomic
Head of FDI Department
Serbia Investment and Export Promotion Agency
www.siepa.gov.rs