Stamenković: Poor growth prospects of Fiat in Serbia

After Fiat cancelled an entire shift in its Kragujevac factory, the growth of the production of Fiat 500-L is now questionable. We’ll see whether Fiat will stay or leave Serbia following the expiration of the contract – said Stojan Stamenković, a research coordinator at Macroeconomic Analyses and Trends magazine (MAT).

“I think that the contract expires in late 2018 and I am not sure whether it is going to be extended or whether Fiat will leave the country. I don’t see prospects for production growth in the factory”, Stamenković said at the Serbian Chamber of Commerce.

In the period between January and July 2016, the value of exported vehicles stood at approximately 1.2 billion EUR and, in July, it went down to 132 million EUR which is a 40% drop compared to July 2015.

In July this year, there was also a 7% decline in the production of motor vehicles and trailers relative to the same month last year, and a 9% drop over the seven-month-period compared to the first seven months of 2015.

Fiat Chrysler Serbia is our biggest exporter. In 2013 alone, the company sold 1.53 billion EUR worth of Fiat 500-Ls, and, in 2014, 1.36 billion EUR. According to the Ministry of Finance, Fiat exported 1.09 billion EUR worth of Fiat 500-Ls in 2015.

Stamenković also noted that there was a drop in foreign trade in July. Export did grow by 1.8% and import by 0.5%, while the export to import ratio grew from 77.7% to 80.4%. in the first seventh months of this year.

Croatia, Bosnia & Herzegovina, Montenegro and Macedonia remain our most attractive export destinations. In the first half of 2016, 24.8% of the entire Serbian export ended up in these countries. Most importantly, we have recorded a substantial surplus in trading with them which grew by 20.9%.

(Politika, 06.09.2016)

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