Yesterday, in one of the most modern car factory in the world - "Chrysler Fiat Automobiles Serbia" in Kragujevac - all production is suspended by the end of this month.
According to the official explanation, this cessation of all work activities is the consequence of unfavorable trends in demand for FIAT cars in the European and American market. Continued production is expected in early July, although another cessation in July lasting ten days is already announced. There is also the traditional Italian Ferragosto coming soon, when all company owned by Fiat world-wide will be closed for a summer break from 03 to 24 August.
Despite working with reduced capacity, the factory has so far produced about 65,000 cars, a number that was also planned for the first half of this year.
The company expects the production of new car model, which could provide continuous work at full capacity of 300,000 cars a year. Such increase in production wouldn't be of benefit only to Fiat, but would stimulate the demand for new jobs and business partners.
It is certain that the FIAT would fulfill this contractual obligation, but on the other hand the state of Serbia has to fulfill the requirements of modernization of the railway line to Kragujevac, building the highway and bypass road around Kragujevac.