Fiat and Zastava Create Auto Alliance

Posted on June 28, 2020 in Strategic Alliances

In an international alliance that seems to have wider-than-industry implications, the Italian automotive giant, Fiat, and Serbian industrial conglomerate, Zastava, signed an agreement last week on strategic cooperation and joint investment.  As reported, the memorandum would give Fiat a 70% stake in Zastava (the state would continue to own the remaining 30%), and mark Fiat’s return to Serbia, where it had had close to 50 years of good cooperation.

Fiat’s arrival means

  • Substantial financial investment
  • Intensified production
  • Expansion of manufacturing
  • Revival of the domestic metal industry
  • Attraction of foreign manufacturers for spare parts production
  • Increased employment not only in Kragujevac, where Zastava is headquartered, but in other towns throughout the country

 

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