Just a good idea, it’s early for champagne

Economists about Serbian electric Fiat: Just a good idea, it’s early for champagne

Professor of the FEFA faculty in Belgrade, Goran Radosavljevic, said that it was a good idea to produce an electric car in Kragujevac’s Fiat, but the question was whether it would be realized and how much it would cost.

“The plan to produce an electric car in the Kragujevac factory is a saving idea for that factory, but the question is whether it will come true.”

There was an announcement earlier that Volkswagen would come to Serbia, so he went to Turkey. I would like that idea to be realized, Radosavljevic said for Beta, on the occasion of the announcement that the production of an electric car will start in the Kragujevac factory.

Radosavljevic said that another important question was how much the production of an electric car would cost the state of Serbia.

Production or assembly – an essential issue

He pointed out that the contract with Fiat should have been published in order to see how much that factory, which does not pay all taxes, has cost Serbia so far.

Goran Radosavljevic (photo: screenshot)

“I don’t think there is anything disputable in the contract, but let’s see how much it cost the state.” I think the project was worth a billion euros. It is not disputable if it costs that much if it benefits from it. “said Radosavljevic.

He added that it was one of the essential questions is whether an electric car will be produced or assembled in Kragujevac.

“Slovakia has developed a large number of small and medium-sized companies that have been trained to produce parts for the automotive industry, and in Serbia, companies are engaged in ‘winding’ cables, and those companies are foreign,” said Radosavljevic.

Since, as he said, the first chance was missed, it should now be used to develop a network of suppliers.

Radosavljevic said that the worst option is not to transform the factory in Kragujevac, which means that it would close, because it is obvious that there is no demand for the car that is currently being produced.

Djogovic: Champagne when production starts

We will open champagne when the production of electric cars starts in Kragujevac, and until then we can be restrainedly optimistic – and nothing moreeconomist Sasa Djogovic told FoNet on the occasion of signing a contract on financing financing production with the company Stelantis.

Djogovic assessed that “we can certainly rejoice” in the announcement of that deal.

“But we need to see under what conditions that production will be performed, as well as what the contractual rights and obligations are.” Essentially, since Serbia has an ownership stake in the Kragujevac factory, it is good to invest in modern, competitive technologies.said Djogovic.

He emphasized that “it would be good if a larger number of components for the future electric car are produced in Serbia”, which would “significantly increase the net export effect”.

The representatives of the state signed an agreement with the international company Stelantis on the investment in the production of an electric car in the Fiat Chrysler factory in Kragujevac, worth 190 million euros, of which Serbia will provide 48 million euros from the budget.

Belgrade, April 28, 2022 – The President of Serbia Aleksandar Vucic and the Executive Director of Stelanti Carlos Tavares addressed the press after the representatives of Stelantis (Srellantis) and the Government of Serbia signed an agreement on financing the production of electric cars in the factory in Kragujevac, today in the Serbian Presidency. (BETAPHOTO / MILOS MISKOV)

Source: N1, agencies

Photo: Pixabay

Source: BIZlife by bizlife.rs.

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