Marchionne: Annex to contract with "Zastava" to be signed in next few days

The President of the Administrative Board of "Fiat" Group, Sergio Marchionne, said on December 20th, 2009, that the annex to the contract, which should finalize the arrangement of that Italian factory with Kragujevac-based "Zastava", would be signed by the end of the year.

According to the press service of company "Fiat automobili Srbija", Marchionne confirmed the importance of "Fiat" Group's engagement in Serbia in the conversation with the President of Serbia, Boris Tadić, who visited "Centro stile Fiat" in Torino on December 20th.

The State Secretary of the Ministry of Economy and Regional Development, Nebojša Ćirić, told "Beta" agency that all parts of the contract and the annex to the contract had been agreed with the Italian factory, as well as that the conditions had been created for closing the transaction, that is, commencement of realization of the deal with company "Fiat".

- Determination of the exact date when the contract will be signed is a technical issue. We expect that to happen in next few days, by the end of the year - said Ćirić.

He explained that closing of the transaction meant that "Fiat" would pay 100m EUR in cash and that Serbia would provide the property, equipment and building of current "Zastava" in Kragujevac for the joint venture.

- Another payment of 100m EUR in cash by "Fiat" and Serbia's founding capital of 50m EUR will be done in 2010 - said he and added that that would be followed by procurement of new equipment and reconstruction of production halls.

Ćirić said that commencement of production of new model in "Zastava" should be expected prior to the end of year 2011.

Zastava auto Kragujevac

FCA Srbija Kragujevac

FIAT Torino Italia

Vlada Republike Srbije

Ministarstvo privrede Republike Srbije

Fiat

Fiat automobili Srbija

Sergio Marchionne

Rome

Centro stile Fiat

Torino

Nebojša Ćirić