Fiat Signs Agreement to Acquire Zastava, Readies 500 Based Topolino Successor

The Fiat Group is one step away from acquiring Zastava as the Italian carmaker and the Serbian Ministry of Economy and Regional Development (Zastava is 99.9 percent-owned by the government) signed a memorandum of understanding (MoU) for the acquisition of the assets of the Zastava plant at Kragujevac, 140 km South-East of Belgrade. According to a joint press release, if deemed feasible, the two companies will enter into a definitive agreement in the course of the coming months.

Sources familiar with the Italian carmaker's plans told Automotive News Europe that the former Zastava plant in Serbia will become the sole factory to build Fiat's new minicar, dubbed Topolino after the iconic 1936 model that led to the 500 in the mid 1950’s. The modern Topolino, expected to be introduced towards the end of 2009, will be based on the 500 / Panda platform, shortened though to about 3,150 mm in length. -Continued

Commenting on the agreement between Fiat and the Serbian government, Sergio Marchionne, CEO of Fiat Group and Fiat Group Automobiles, said, “This initiative represents a further step in Fiat Group Automobiles’ strategy aimed at supporting its growth and volume aspirations. It follows a number of targeted alliances and partnerships signed with leading carmakers and automotive suppliers over the last four years.”

“Moreover, it demonstrates our confidence and trust in Serbia, its industry, management competence and the skill of its workers, not to forget the Serbian automotive market itself, which we consider an integral extension of our domestic market. 54 years ago, Fiat and Zastava signed an accord for the construction of the factory at Kragujevac where the Fiat Punto is manufactured today”

“We believe that, together with Zastava, we have played an important role in enhancing the Serbian automotive industry from both the manufacturing as well as the technological point of view. We are proud that many Serbian engineers and technicians have been trained at Fiat in Italy and in Serbia.”