Bilateral Relations: Serbia joins with Fiat in auto plant deal

Serbia' has signed a $1 billion joint venture with the Italian car giant Fiat in an attempt to revive the country's only car plant Zastava.

Serbian Economy Minister Mladjan Dinkic and Fiat's chief executive Sergio Marchionne signed the agreement yesterday in Belgrade.

The joint statement says Fiat will have a 67 percent stake in the joint venture. It says an initial investment of $1 billion includes the support of close to $300 million by the Serbian government. Dinkic called the venture Serbia's biggest investment so far.

Published by Mike Hitchen, Mike Hitchen Consulting