Fiat 500L for EUR 10,900 - FAS to offer citizens of Serbia its new model at more affordable price and hire another 600 workers

About 5,000 citizens of Serbia will be able to buy Fiat 500L at a price of EUR 10,900 this and next year. The EUR 3,000 difference between the discounted price and the regular price of that vehicle will be paid from the state treasury, Finance Minister Mladjan Dinkic and FAS CEO Antonio Cesare Ferrara agreed Friday (22 March 2013).

As Ferrara announced, people in Serbia will be able to buy the Nacionale version of Fiat's new model on a loan with a repayment period of five years and an annual interest rate of 3 percent.

Jobs for another 600 workers

Fiat automobili Srbija (FAS), one of the largest employers in our country, announced Friday (22 March 2013) that it was going to hire new workers. The Kragujevac-based factory currently has about 2,500 employees and should employ another 600 by the year's end due to an increased demand for their cars abroad.

- Fiat will invest additional EUR 10 milion in equipment and start hiring new workers in April – Dinkic explained after signing an agreement with Ferrara.

A major share of the production from Kragujevac is exported, and the company expects EUR 1.5 billion revenues from sales abroad by the year's end, with Fiat 500L as the main export product.

(Mladjan Dinkic and Antonio Cesare Ferrara at the Motor Show)

- By February 2013 we received over 40,000 orders for this model from Europe. In 2012, the largest export market for Fiat 500L was Italy, followed by France, Spain and Germany - said people at FAS.

The 500L model for the US market will go into mass production this year, and it has been announced recently that the Serbian government will try to get the green light for duty-free exports to Russia, which will not be easy.

The company plans to produce between 110 and 150 thousand cars this year, depending on the market demand.

Given that the Kragujevac-based factory has often been brought in connection with the fallen Smederevo giant over the last few days, we asked Mr. Ferrara if the steelworks in Smederevo was really going to produce sheet metal for chassis for Fiat vehicles.

- We haven't had any negotiations yet - Antonio Cesare Ferrara told eKapija, adding that he did not rule out the possibility of negotiating such cooperation in the future.

- We will take every offer in consideration and if they meet the prescribed standards and terms, we may enter into cooperation – Ferrara said to us.

The company won an award for the best investment in a factory in early February 2013, whereas the Serbian Chamber of Commerce presented FAS with the Best of Serbia 2012 Award in March 2013.

FAS' suppliers employ a total of about 1,000 workers at their production facilities.

Importers complain

Although the news about cheaper Fiat 500L has made people in Serbia happy, car importers are of the opinion that the state is ruining their business.

- We believe this is not a fair market game. Fiat does not bother us, but we only request the same terms - Milos Petrovic, president of the Serbian Association of Car Importers, said at an extraordinary press conference on Friday, announcing that a decision on further steps would be made March 25th.

Despite all the protests, the state's assistance to the domestic automotive industry is an expected step.

Cars topped Serbia's export list in October 2012 for the first time in many years. Serbia exported USD 63 million worth of diesel cars (with a capacity of up to 1,500 cubic centimeters) in January. However, we should also not forget that parts and tools for motor vehicles are the second most valuable import product of Serbia - USD 84 million.

M.S.