Cars assembled by 15,000 local workers

(Photo: Mapei)

Serbia's automotive industry, which employs 15,000 workers and annually generates nearly EUR 2 billion, will be a significant source of budget revenue. The largest exporter in this industry will be Fiat with about EUR 1.6 billion worth of exports.

Bosch, Yura, Magneti Marelli, Jonhnson Control, and Tigar, all of which have received employment incentives, will export goods worth EUR 400 million, RTS reports.

They will also be joined by Mercedes that is going to enter into strategic partnership with Belgrade-based Ikarbus. Mercedes is not a newcomer to this region. Back in the 1980s, first licensed trucks in Europe were coming out of the Priboj-based factory, Mercedes' only production facility outside Germany at the time. Engines were assembled in Bosnia-Herzegovina and entire vehicles in Serbia.

Almost three decades later, thanks to big efforts from the government, Mercedes is ready to join the production of city buses of the latest generation. The Belgrade City Transportation Company (GSP) needs these buses and currently imports them from Poland. This deal would keep the Ikarbus staff busy over the next five years, while all surplus buses could be exported through Mercedes' sales network.

The largest investment to which the Serbian government has contributed is the automobile factory in Kragujevac, where about 10,000 500L vehicles will be assembled this year. Fiat came to Kragujevac because of tradition as well as due to very attractive investment terms.