FAS continues production – Is a new car model urgently needed for better placement?

This morning, September 10, 2014, production of "500L" at Kragujevac-based Fiat automobili Srbija (FAS) has continued after a temporary three-day halt, the President of Independent Trade Union of the plant, Zoran Markovic, confirmed for Tanjug.

He added that, in line with the previous agreement with the management, they will work in three shifts tomorrow as well.

- Temporary halt causes are of external character and they refer to situation at European and world automotive market caused by economical parameters and economic crisis – it was stated at FAS announcement.

Markovic has said before that “without a new model or additional work, the plant will not be able to operate normally in 2015 with current 3000 people”, which is why the Independent Trade Union addressed the Government of Serbia and the Prime Minister Aleksandar Vucic, having g in mind that the state is a co-owner of the plant.

Connoisseurs of automotive market and economic analysts said for Tanjug yesterday that production in FAS was halted due to decreased demand because, as they explain, the sector was hit with the crisis in car industry in Europe, relations with Russia which is a big market for them as well as that Fiat did not benefit from the last year’s return of the 500L model with a mistake sent to America.

Collocutors of Tanjug claim that 500L model is not competitive enough as well as that Fiat needs a new model for better placement.