Fiat Waits For Government Money. Serbia Says It Will Pay Next Year
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.
Kragujevac was the main weapons manufacturing city of the former Yugoslavia. I have a beautiful Mauser 98 clone made in Kragujevac. If the Serbs really are serious about being successful in the car biz, they should consider offering options that other car makers don't, like a Fiat 500 with built in rocket launchers. I'll bet they would be big sellers in the Mideast.
Two words for Sergio: "Escrow Account"... ("forgotten my a$$!)