The first tranche of the state subsidy paid to FCA Serbia

Fiat Chrysler Automobiles (FCA) Serbia has received the first tranche of subsidies, worth 15.5 million euros, to be used for improving production at its Kragujevac plant.

Back in April last year, the Serbian Ministry of Economy granted FCA a 48-million-euro subsidy which was subsequently put on hold. Both FCA and the Ministry did not provide an explanation as to why the payment of subsidies was delayed for a year and a half.

During the period of suspension of state aid payments, and due to the announcement of the relocation of production, FCA offered the workers a two-year job in Slovakia or the termination of the job contract with severance pay, which was taken by almost 500 workers.

The ‘unlocking’ of the subsidy coincides with claims that the production of a new electric Fiat Panda will begin in Kragujevac next year.

FCA and the Serbian government concluded a contract in 2022 worth 190 million euros, of which Serbia had to allocate 48 million from the budget.

(Biznis.rs, 07.12.2023)

https://biznis.rs/vesti/isplacena-prva-transa-subvencije-kompaniji-fca-srbija/

This post is also available in: Italiano

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