Zastava is now part of Fiat

When the Serbian government announced it would accept investment offers from international companies, no one imagined that Fiat would have been interested in Zastava.

Talks began in December of last year with several different companies, but rumors about the Italian brand’s approach were never taken seriously.

According to reports, Fiat has signed a memorandum of understanding with Serbia to establish a joint venture in which €900 million will be invested to build new facilities at Zastava, with the Italian company taking a majority stake.

Fiat has mentioned that it will use this plant to manufacture its new model Topolino, whose chassis will be based on the 500 and the Panda, but it will sit one category below both and is expected to compete with the Smart ForTwo.

Growth in the car parc across Europe is the perfect pretext to expand the range of models and the markets they target, which is why building new plants in different locations is the best alternative. Another example is the possibility of assembling Porsche cars in Russia.

Source: Autoblog.es