Italy’s Iveco Eyes Bus Factory Investment in Serbia, Sibling Co Magneti Marelli Set To Acquire Zastava Kamioni - Media

At the same time, talks with Magneti Marelli, part of Fiat Group's components and production systems division, on the acquisition of Serbian truck maker Zastava Kamioni are in their final stages, broadcaster b92 (www.b92.net) reported, quoting Kragujevac Deputy Mayor Nebojsa Zdravkovic.

Iveco is considering building the production unit in the Korman Polje duty-free zone near Kragujevac, Zdravkovic said.

No further details were immediately available.

Sergio Marchionne, CEO of Fiat Group and Fiat Group Automobiles, and Serbian Economy Minister Mladjan Dinkic signed in 2008 a memorandum of understanding (MoU) as the basis for a potential cooperation between Iveco and Magneti Marelli and the Serbian government in the production of buses, special vehicles, and automotive components.

The MoU foresees the establishment of two new joint-venture companies, which would be owned 70% by Iveco and Magneti Marelli, respectively, and 30% by the Serbian government.

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