"Magneti Marelli" to buy "Zastava Trucks"

- The method of privatization of "Zastava Trucks" is still unknown because, in addition to company "Iveco", the largest and the most significant company from the accompanying industry of "Fiat Group" - "Magneti Marelli" - is also interested in that process - "Novosti" learned from the reliable sources.

The memorandum of understanding, which was signed between company "Iveco" and the state of Serbia on September 29, 2008, anticipates forming of the joint venture on the grounds of "Zastava Trucks". Italians would own 70% of that new factory, while "Iveco" already owns 34% of the factory. City of Kragujevac has also made it possible for that company to get free land to expand its capacities.

During the initial negotiations, Italians announced that they needed another 20 ha for construction of new bus factory.

The place where the future "Iveco" bus factory should be built is clearly defined in the concrete projects that the experts from "Fiat" have recently submitted to the authorized people in Serbia.

When that special pre-contract was signed, it was suggested that "Iveco" should be producing special fire and military vehicles in Serbia, as well as that it would expand its capacities in Korman Field. Due to global economic crisis, signing of the contract that was scheduled for March 29th, 2009, was postponed, but the first Fiat's projects show that "Iveco" has not given up its activities in Kragujevac.

"Novosti" finds out that "Iveco", "Magneti Marelli" and the authorized people in Serbia are negotiating about takeover of "Zastava Trucks" by the Italian manufacturer of components instead of the bus and truck manufacturer.

According to the initial plan, "Magneti Marelli" was supposed to settle its units on the grounds of "Mehanička Obrada", but the space of the truck factory is more favorable for strategic reasons (direct access to highway). "Iveco" is, definitely, going to have its factory built next to the highway.

BUSES FROM ŠUMADIJA

New "Iveco" factory in industrial zone Korman Field should be producing 2,200 buses per year, primarily for European market. According to the new agreements, other "Iveco" models would also be produced in those units, while four, instead of five, Italian companies that produce components would organize their production in "Mehanička Obrada". The accompanying industry of "Fiat" and company "Iveco" would invest 240m EUR in Serbia in that case.

(Note: complete text is taken over from newspaper "Novosti" of August 10, 2009)