Fiat Serbia., name=FS — formerly "FIAT Automobiles Serbia".
[, name=FAS (FAS) from 2008 to 2014, then
"FCA Serbia".][, name=FCAS (FCAS) until 2021 — is a Serbian automotive manufacturing company based in ]Kragujevac
Kragujevac ( sr-Cyrl, Крагујевац, ) is the fourth largest city in Serbia and the administrative centre of the Šumadija District. It is the historical centre of the geographical region of Šumadija in central Serbia, and is situated on ...
, Serbia
Serbia (, ; Serbian language, Serbian: , , ), officially the Republic of Serbia (Serbian language, Serbian: , , ), is a landlocked country in Southeast Europe, Southeastern and Central Europe, situated at the crossroads of the Pannonian Bas ...
. It is a joint venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...
(JV) between the ex-Fiat Chrysler Automobiles
Fiat Chrysler Automobiles N.V. (FCA) was an Italian-American multinational corporation primarily known as a manufacturer of automobiles, commercial vehicles, auto parts and production systems. The Italian holding company Exor was the largest ...
(FCA), merged into Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
in 2021, which owns 67% of the operation, and the Republic of Serbia, which owns the remainder.
The company headquarters and assembly plant are located on the former site of Zastava Automobiles
Zastava Automobiles ( sr, Застава Аутомобили/''Zastava Automobili'') was a Serbian international car manufacturer, a subsidiary of Group Zastava Vehicles which went bankrupt in May 2017.
After many decades of producing different ...
(1953-2008) — 70 miles south of Belgrade
Belgrade ( , ;, ; Names of European cities in different languages: B, names in other languages) is the Capital city, capital and List of cities in Serbia, largest city in Serbia. It is located at the confluence of the Sava and Danube rivers a ...
on the Lepenica river in the country's central Šumadija
Šumadija (, sr-Cyrl, Шумадија) is a geographical region in the central part of Serbia. The area used to be heavily covered with forests, hence the name (from ''šuma'' 'forest'). The city of Kragujevac is the administrative center of the ...
region. Heavily damaged during the NATO Bombing of Yugoslavia
Yugoslavia (; sh-Latn-Cyrl, separator=" / ", Jugoslavija, Југославија ; sl, Jugoslavija ; mk, Југославија ;; rup, Iugoslavia; hu, Jugoszlávia; rue, label=Pannonian Rusyn, Югославия, translit=Juhoslavija ...
, the factory was completely renovated and modernized, reopening in April 2012 as one of Europe's state of the art car factories.
The operation currently has roughly 2,000 employees and works closely with 15 other companies and component suppliers, many located at the adjacent Grosnica Supplier Park — with a combined workforce of roughly 6,000 tied to production at Fiat Serbia. The factory has a daily output of roughly 400 cars.
The JV is the largest foreign industrial investment in Serbia and as the country's largest exporter, with exports valued at 1 billion euro ($1.1 billion) in 2016.
The plant manufactures the Fiat 500L
The Fiat 500L is a car manufactured by Fiat under the FCA Serbia joint venture and marketed globally since its debut at the 2012 Geneva Motor Show. It is classified as a Mini MPV.
Based on a variant of the GM Fiat Small platform, ''FCA Sma ...
, a five-door, five passenger, front-engine, front-wheel drive, high-roof B-segment
The B-segment is the second smallest of the European segments for passenger cars between the A-segment and C-segment, and commonly described as "small cars". The B-segment is the largest segment in Europe by volume, accounting for 20 percent of ...
MPV, which Stellantis markets globally in more than 100 countries — with the notable exception of Russia. By early 2018, production surpassed 500,000 units.
Background
From 1955 to 1999, the Krugujevac plant manufactured Zastava Automobiles
Zastava Automobiles ( sr, Застава Аутомобили/''Zastava Automobili'') was a Serbian international car manufacturer, a subsidiary of Group Zastava Vehicles which went bankrupt in May 2017.
After many decades of producing different ...
under the Zastava, Yugo, and Fiat
Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiary ...
brands. Serbia's central Šumadija
Šumadija (, sr-Cyrl, Шумадија) is a geographical region in the central part of Serbia. The area used to be heavily covered with forests, hence the name (from ''šuma'' 'forest'). The city of Kragujevac is the administrative center of the ...
region was severely impacted in the 1990s by the collapse of Yugoslavia
Yugoslavia (; sh-Latn-Cyrl, separator=" / ", Jugoslavija, Југославија ; sl, Jugoslavija ; mk, Југославија ;; rup, Iugoslavia; hu, Jugoszlávia; rue, label=Pannonian Rusyn, Югославия, translit=Juhoslavija ...
, as well as the subsequent war and its sanctions. The factory buildings were severely damaged in 1999 by the NATO bombing of Yugoslavia
The North Atlantic Treaty Organization (NATO) carried out an aerial bombing campaign against the Federal Republic of Yugoslavia during the Kosovo War. The air strikes lasted from 24 March 1999 to 10 June 1999. The bombings continued until an a ...
.
By the early 2000s, automotive companies began opening new manufacturing plants in nearby Hungary, Romania, Slovakia, and Slovenia — representing brands including Audi, Mercedes Benz, Renault, and Suzuki. Manufacturing costs in Serbia were projected at one fifth those of Italy and half of those in Poland.
In April 2008, Fiat reached an agreement to purchase the damaged Kragujevac plant, completing a joint venture with the Republic of Serbia that same year and renaming the company ''Fiat Automobili Srbija'' (FAS).
Fiat pledged €700 million in return for a 67 percent stake in the company (then owned by the state) and an additional €100 million investment by the Serbian government
The Government of Serbia ( sr, Влада Србије, Vlada Srbije), formally the Government of the Republic of Serbia ( sr, Влада Републике Србије, Vlada Republike Srbije), commonly abbreviated to Serbian Government ( sr, ...
. This was later increased to €300 million. Fiat pledged not to cut jobs and to pay a backlog in wage payments, saying the plant would become a dedicated Fiat production site with a maximum production capacity of 330,000 units.
In the end, the financing consisted of an investment by the government of Serbia of more than €300 million, partially financed from credit of €500 million in credit given by European Investment Bank
The European Investment Bank (EIB) is the European Union's investment bank and is owned by the EU Member States. It is one of the largest supranational lenders in the world. The EIB finances and invests both through equity and debt solutions ...
with Republic of Serbia guarantees for €300 million while €200 million of the same credit line guaranteed by Servizi Assicurativi del Commercio Estero
SACE is the Italian export credit agency. It is wholly-owned by Ministry of Economy and Finance and governed by Filippo Giansante, as Chairman, and Alessandra Ricci, as CEO.
History
* 1977 - establishment of Sezione speciale per l'Assicurazione ...
(SACE).
While the joint venture contract is not publicized, Fiat is exempt from employee income tax and social security contributions, Serbia's profit tax for 10 years from the first year, and property taxes, among others.
In 2013, wages at Fiat were one fifth of Italian wages and one third of Polish wages. Kragujevac also offers beneficial transport links and close proximity to European markets. North American models are exported by rail and ship from the port of Bar, Montenegro
Bar ( Montenegrin and Serbian: Бар, ; sq, Tivar; it, Antivari or ''Antibari'') is a coastal town and seaport in southern Montenegro. It is the capital of the Bar Municipality and a center for tourism. According to the 2011 census, the ci ...
.
When FAS became a subsidiary of Fiat Chrysler Automobiles
Fiat Chrysler Automobiles N.V. (FCA) was an Italian-American multinational corporation primarily known as a manufacturer of automobiles, commercial vehicles, auto parts and production systems. The Italian holding company Exor was the largest ...
in 2014, the factory was renamed FCA Serbia (FCAS).
The original joint venture agreement between Serbia and Fiat expired on 31 December 2018, but got renewed.
In 2018, FCA Srbija was Serbia's second largest (gross) exporter, at €714.1 — behind HBIS Group, owner of Smederevo Ironworks.
In 2021, following FCA merger into Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
, the Serbian company has been renamed Fiat Serbia.
Plant
Between 2010 and 2012, Fiat Chrysler Automobiles and the Government of Serbia invested more than €500 million and spent three years upgrading the plant infrastructure, restored its buildings, developed new production departments and installed state of the art machinery and production systems.
The renovated Kregujevac plant incorporates 51 buildings total and five primary process-related buildings — with an area of approximately 220,000 square meters covering more than 140 hectares adjacent to the Lepenica river.
Renovation included architectural, structural, geo-technical, mechanical, and electrical work as well as public health design, seismic retrofit design, fluid tank design, and pipe-rack bridge design. The new work included planting 1,000 native trees in the factory area and creating a bio-lake hosting several endangered species.
In 2013 the plant employed 3,800 workers with an average age of 30, and incorporates "World Class Manufacturing" standards at the silver level.
The Fiat headquarters (building 18c) has a ground floor museum, a permanent exhibition highlighting the history of the site and Kragujevac — along with a training academy as well as corporate and manufacturing offices. A nearby building has an on-site kindergarten
Kindergarten is a preschool educational approach based on playing, singing, practical activities such as drawing, and social interaction as part of the transition from home to school. Such institutions were originally made in the late 18th cent ...
for employee families.
The co-located Grosnica Supplier Park includes sub-works for Magneti Marelli (bumpers, spoilers, exhaust systems and catalytic converters), Johnson Controls MM (instrument panels, interior, interior parts and plastic parts), Dräxlmaier (electrical), with other plants nearby, including Adient
Adient plc is an American Irish-domiciled company that manufactures automotive seating for customers worldwide and is based in Plymouth, Michigan, United States. , Adient was the world's largest auto seat manufacturer, accounting for one-third ...
(seats), PMC (suspension systems, sheet metal stampings and chassis assemblies), SIGIT (rubber and plastic parts) as well as HTL.
Layoff, strike and stoppages
In June 2016, Fiat Serbia laid off nearly 30 percent of its workforce and ended one of its three shifts. At the time, the plant employed 3,100 with up to 900 workers per shift. European sales of the 500L had fallen by 16 percent in the first quarter of 2016.
On 27 June 2017, after two days of protests, 90% of the workforce at Fiat Serbia began a strike that ended just over two weeks later. Workers demanded an hourly wage increase from 2 to 2,40 euros, paid overtime, an end to layoffs, a work reorganization, and compensation allowance for shifts that start or finish at night, from 10 PM to 5 AM, when the public transportation isn't operating. Two unions supported the strike, the Autonomous Metalworkers’ Union of Serbia (SSMS) and the Industry, Energy and Mining Workers’ Union, GS IER Nezavisnost. The strike halted the factory's 440 car-per-day production.
By late March 2018, Fiat Serbia had undergone four plant closures to adjust supply to demand — the last of the stoppages from March 23 to April 3, 2018 (as of April 2018).
In May 2022, Fiat management announced that they intend to close and refurbish the plant in order to produce a new electric car
An electric car, battery electric car, or all-electric car is an automobile that is propelled by one or more electric motors, using only energy stored in batteries. Compared to internal combustion engine (ICE) vehicles, electric cars are quie ...
beginning with 2024. Until then, workers have been offered to either relocate to a Fiat plant abroad (Italy, Germany, Poland, Slovakia), where they can earn three times more, or to accept a layoff severance pay
Severance may refer to:
Arts and entertainment
* ''Severance'' (film), a 2006 British horror film
* ''Severance'' (novel), a 2018 novel by Ling Ma
*''Severance'', a 2006 short-story collection by Robert Olen Butler
* ''Severance'' (TV series), a ...
.
See also
* Fiat Group Assembly Sites
* Stellantis Italy
Stellantis Italy, formerly known as Fiat Group Automobiles S.p.A. from 2007 to 2014 and FCA Italy S.p.A. from 2014 to 2021, is the Italian subsidiary of the multinational automaker Stellantis, dedicated to the production and selling of passeng ...
Notes and references
Notes
References
External links
*
Fijat u Kragujevcu: Šta su građani dobili i šta ako Italijani odu
at b92.net
{{Authority control
Car manufacturers of Serbia
Fiat Group factories
Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiary ...
Automobili Srbij
Fiat Chrysler Automobiles
Companies based in Kragujevac
Vehicle manufacturing companies established in 2008
2008 establishments in Serbia