Re: Chasing cheap brands, labor: Fiat to start talks with Zastava
Just in case nobody remembers. Zastava was the company responsible for the Yugo
Just in case nobody remembers. Zastava was the company responsible for the Yugo
MORE HEREFiat interested in Serbia's Zastava, to hold talks soon - Serb minister UPDATE
April 22, 2008: 12:08 PM EST
MILAN, Apr. 22, 2008 (Thomson Financial delivered by Newstex) -- Fiat SpA is interested in acquiring Serbia's only auto manufacturer Zastava, said outgoing economy minister Mladjan Dinkic, adding that Fiat representatives are due in Belgrade this week.
In a Radiocor report from Belgrade, Dinkic said that based on the results of talks between Fiat and Zastava, the government will decide by the end of the month whether to hold an auction for Zastava.
The news agency said the Serb government had been due to auction Zastava this month but the operation was suspended after the government fell in March and ahead of new elections in May.
Citing government sources, Radiocor said Fiat is ready to invest 300 million euros on the Serb production plants, a high price which could see the auction not taking place.
Fiat already has an agreement with Zastava to assemble Fiat's Punto model in Serbia and sell them in Serbia and neighbouring Balkan countries, as well as export them to Russia, it said.
In 2006, Zastava produced 15,000 Punto models, a long way from its production capacity of 60,000, it said.
Serb newspaper reports say Volkswagen AG is also interested in Zastava and a month ago was considering whether to make an offer, it said.
General Motors (NYSE:GM) Europe has denied an interest, it said.
At start of April, Dinkic said the government could find more than one buyer for Zastava as part of making the region a centre for auto production, it said.
True, but nobody laughs at the Skoda jokes anymore. Daewoo produced Daewoos!! - who's laughing now? VW (and GM) want to get their hands on Proton. There was a bidding battle for Lada which, now Renault/Nissan has the stake, propels them to number 3 in the world - I hope, when GM made their bid, they considered the increasing scarcity value of these brands in these markets.Just in case nobody remembers. Zastava was the company responsible for the Yugo![]()
All true, no doubt. Some of the former back-water brands are now hot commodities as the standard of living increases around the world.True, but nobody laughs at the Skoda jokes anymore. Daewoo produced Daewoos!! - who's laughing now? VW (and GM) want to get their hands on Proton. There was a bidding battle for Lada which, now Renault/Nissan has the stake, propels them to number 3 in the world - I hope, when GM made their bid, they considered the increasing scarcity value of these brands in these markets.
True, but nobody laughs at the Skoda jokes anymore. Daewoo produced Daewoos!! - who's laughing now? VW (and GM) want to get their hands on Proton. There was a bidding battle for Lada which, now Renault/Nissan has the stake, propels them to number 3 in the world - I hope, when GM made their bid, they considered the increasing scarcity value of these brands in these markets.