Fiat Chrysler Automobiles intends to leave Serbia?

SOURCEB92

The biggest problem at the moment in Serbia’s economy is the strike in the Kragujevac-based factory Fiat Chrysler Automobiles Serbia factory.

This is according to the economist Stojan Stamenkovic, who also said that the total export of Serbia is declining due to the halted production there.

Speaking at the presentation of the latest issue of Macroeconomic Analysis and Trends at the Serbian Chamber of Commerce, Stamenkovic noted that production of motor vehicles and trailers, including cars, still accounts for most of Serbia’s exports – but that contribution of this branch to total exports is reduced due to the strike in the Kragujevac factory.

“At this moment, it is not possible to calculate the damage from the suspension of production at the Fiat factory in Kragujevac because it is not known how long the strike will last,” Stamenkovic said.

If, he continued, the speculation that Fiat intends to leave Serbia comes true, that could become “a bigger problem for the economic policy than the restructuring of public enterprises.”

Stamenkovic added that many goals that were agreed upon when this company arrived in Serbia have not met by both Fiat and the state of Serbia.

“The state did not provide the agreed infrastructure to Fiat, and Fiat did not modernize the 500L model, as promised, and the vehicle is too expensive,” said Stamenkovic.

Director of the Statistical Office of the Republic of Serbia Miladin Kovacevic said that there are reasons why Fiat would find it difficult to decide to leave Serbia.

According to Kovacevic, the company has invested a lot of money in the Kragujevac factory – and in addition, “Serbia is among the countries with the cheapest workforce.”

B92

1 COMMENT

  1. “Serbia is among the countries with the cheapest workforce.”

    So maybe they could raise the salaries a moderate degree and stop the strike.
    Also, why hasn’t the free trade agreement with Russia ever been enacted. The last I heard it was Kazakhstan worried about competition with its vehicles in its common market with Russia. But that was like a year ago, and I thought things were being worked out.
    Is Fiat/Italy leaves is there another prospective company interested in building cars or trucks there? Or could the Serbian government invest and help start a fully domestic car?

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