The Truth About Cars » Serbia http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Fri, 05 Dec 2014 17:06:32 +0000 en-US hourly 1 http://wordpress.org/?v=4.0.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Serbia http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Marchionne’s Money: Kragujevac Can’t Pay, Brussels Can http://www.thetruthaboutcars.com/2012/08/marchionnes-money-kragujevac-cant-pay-brussels-can/ http://www.thetruthaboutcars.com/2012/08/marchionnes-money-kragujevac-cant-pay-brussels-can/#comments Fri, 31 Aug 2012 13:34:34 +0000 http://www.thetruthaboutcars.com/?p=458454 Turns out that Fiat wasn’t affected too bad by Serbia’s sudden cash crunch. As reported yesterday, the country is having a hard time coming up €90 million it owes Fiat towards a jointly owned car plant in Kragujevac. Fiat has a richer sugar daddy, and he lives in Brussels.  The European Investment Bank sees no […]

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Turns out that Fiat wasn’t affected too bad by Serbia’s sudden cash crunch. As reported yesterday, the country is having a hard time coming up €90 million it owes Fiat towards a jointly owned car plant in Kragujevac. Fiat has a richer sugar daddy, and he lives in Brussels.  The European Investment Bank sees no reason not to continue disbursing its 500 million euro ($625 million) loan to Fiat, Reuters says. The loan is earmarked for the same plant.

The subsidized loan was granted by the European Union’s finance arm in May 2011, and  “at the moment we are not aware of any impact on the loan,” a spokesman for the EIB told Reuters  today.

This is how the deal works: The EU pays €500 million, Fiat pays €410 million, Serbia pays €90 million. Except that Serbia will pay a bit later.

The Kragujevac plant opened on April 14 with a capacity of up to 200,000 cars per year.  It builds Fiat’s new 500L, as in large.  The car will be launched next month.

Does Europe need new 200,000 car factories? Guess with a big loan from Brussels, that overcapacity problem suddenly doesn’t look that big anymore.

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Fiat Waits For Government Money. Serbia Says It Will Pay Next Year http://www.thetruthaboutcars.com/2012/08/fiat-waits-for-government-money-serbia-says-it-will-pay-next-year/ http://www.thetruthaboutcars.com/2012/08/fiat-waits-for-government-money-serbia-says-it-will-pay-next-year/#comments Thu, 30 Aug 2012 12:13:06 +0000 http://www.thetruthaboutcars.com/?p=458298 The U.S. government may have to wait a little more until it sees the money it has sunk into GM. The reverse is true in Serbia. There, Fiat has to wait a little longer for the money owed by the Serbian government. Serbia owns 33 percent of a 1 billion euro joint venture with Fiat […]

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The U.S. government may have to wait a little more until it sees the money it has sunk into GM. The reverse is true in Serbia. There, Fiat has to wait a little longer for the money owed by the Serbian government.

Serbia owns 33 percent of a 1 billion euro joint venture with Fiat to produce the Fiat 500l in Kragujevac. The first cars were produced in July, but Serbia still hasn’t paid its share.  Serbia and Fiat rescheduled payments , says Reuters:

“Serbia will pay 50 million euros ($63 million), or 55 percent of the 90 million it owes Fiat this year, once it has revised the 2012 budget in September. The rest will be paid in 2013.”

A new, Socialist-led coalition government took power in Serbia in July, and it blames the previous government for forgetting to o include payments to Fiat in the 2012 budget.

 

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