FCA invests 1.4 bln euro in car factory in Serbia to date - manager

FCA invests 1.4 bln euro in car factory in Serbia to date - manager Source: FCA Srbija

BELGRADE (Serbia), June 6 (SeeNews) - Italy's Fiat Chrysler Automobiles (FCA) Group has invested 1.4 billion euro ($1.65 billion) in its Serbian factory in Kragujevac to date, factory manager Alessio Leonardi said on Wednesday. 

The figure includes the latest acquisition of state-of-the-art production equipment, Leonardi said in a video file posted on the website of Serbian news agency Tanjug. 

The company intends to make a presentation of its investment plans before the Serbian government, Leonardi said during the official opening of "Industry 4.0" conference at the Kragujevac factory.

The CEO of FCA, Sergio Marchionne, said during an investor conference last week that the company planned to transfer the production of motor vehicles with smaller engines to countries offering low labour costs, Italian media reported earlier this week. 

The Kragujevac plant manufactures the Fiat 500L, a five-door, five-passenger, front-engine, front-wheel drive vehicle, which FCA markets in about 100 countries worldwide.

Fiat 500 is an ideal model for becoming a fully electric car, while the 500X and 500L models will get hybrid engines, Italian media quoted Marchionne as saying.

According to the Turin edition of Rome-based daily newspaper La Repubblica, FCA is considering relocating vehicle production to Serbia, Poland, Turkey and Mexico, albeit not in the short term.

The Kragujevac factory, launched in 2012, is operated by FCA Srbija, a joint venture of FCA Group and the Serbian government. FCA Group controls 67% of the capital of FCA Srbija through its subsidiary Fiat Group Automobiles (FGA), while the Serbian government owns the remainder.

($ = 0.849049 euro)

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