Fiat purchases Zastava
October 19th, 2008
Fiat will now own 70% of Zastava and this will be completed by the end of this month.
The settled takeover will engage Fiat’s 700million-Euro purchase of 70% of the company with the Serbian government holding a 30% stake.
The conduct includes the Zastava factory in Kragujerac, which has been building the last-generation Fiat Punto under licence for sale as the Zastava 10.
Both Fiat and the Serbian government are to spend a further 100million Euros each to advance the factory and fit it out to build two all-new Fiat models. Production of the first ‘new Topolino’ city car – will begin in late 2009, with an output of 200,000 a year planned. A second car, to up volume to 300,000 cars a year, will go into production in 2010.