It's a shame that the internet is a virtual medium, because there are a lot of people out there that I'd like to express my deep feelings of friendship to, and having spent the last two years here in Serbia, I'd like to do it in a truly Serbian way.
Fiat Postpones Serbia Zastava Deal
Belgrade | 10 November 2009 | Bojana Barlovac
Zastava-assembled Fiat Punto (archive)
Daily Danas reports that the document will not be verified on Tuesday as the Italian partners have not yet submitted a business plan for the new company.
Fiat signed a memorandum of understanding with the Serbian government for the acquisition of Serbia's state-owned car factory Zastava in May 2008 that presages the establishment of the new company.
Under the terms of the agreement, Fiat will have a majority 67 per cent stake in the company, with Serbian partner Zastava holding 33 per cent. Fiat is expected to invest €800 million in the company, while the Serbian government has pledged €300 million.
Zastava has a long history of cooperation with Fiat. In the 1950s, Zastava started production on the local version of the Fiat Topolino subcompact, Fiat 1300 and Fiat 128 sedans. In the 1980s, Zastava launched production of the Yugo and Zastava 101 subcompacts and licensed Fiat Iveco trucks and utility vehicles.
“We really do not know what is going on anymore,” Zastava administration told the daily.
Serbian economy ministry said that the annex is ready, but that the Italian partners must wrap up “some other, final formalities” in order to begin work, the daily reports.
