The Serbian government has given 48 million euros in subsidies to Fiat, with an obligation for Fiat to invest at least another 162 million euros in its Kragujevac plant by the end of 2024.
This follows the announcement that production of electric cars at the Kragujevac plant will start next year, as stipulated in the agreement signed by FCA (Fiat Chrysler Automobiles) and the Serbian government. According to the agreement, the company has no obligation to hire additional workers.
Of the total investment, FCA Serbia, which is partly state-owned, must finance at least 1/4 of the investment from its own funds. The state subsidy will be paid to the company in two tranches – the first tranche of 15.5 million euros in 2023 and the second of 32.54 million euros in 2024.
The company undertakes not to reduce the “value of tangible and intangible assets” for 5 years from the end of this investment project.
In 2021, Fiat Chrysler Automobiles had estimated consolidated revenue of around €149.4 billion at Group level (FCA operates under Stellantis). There are no published financial reports yet for last year, while in 2020 the Serbian branch of Fiat Chrysler Automobiles reported total operating income of 45.9 billion dinars (390 million euros), which is lower than in 2019, when revenues were 63.9 billion dinars (544 million euros).
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