The factory of Fiat Automobili Srbija (FAS) officially opened in Kragujevac, central Serbia, as the joint project of the Serbian government and Italian giant Fiat worth around EUR 1 billion.

Serbian Prime Minister Mirko Cvetkovic pointed out that the newly-opened factory Fiat Automobili Srbija (FAS) as the one of most up-to-date car factories in world would produce the exclusive car model.

The prime minister said that the joint project of the Serbian government and FAS would raise the country's reputation and bring profits both to Fiat and Serbia as a partner in the project.

During the official opening of the FAS factory, Cvetkovic underscored that the EUR 1 billion investment is probably the biggest investment made in any production capacity in Serbia in the past few decades, adding that when the production reaches its full capacities, the company would directly employ 2.500 workers and another 1.000 people indirectly.

Director General of FIAT-Chrysler Group Sergio Marchionne said that the opening of the new factory marks the successful completion of a completely redesigned factory and the most up-to-date industrial plant with most modern Fiat technology.

The factory would be producing around 200.000 vehicles annually and the new Fiat 500 L model will appear next autumn, he said.

Marchionne underscored that Fiat chose Serbia as the destination for its investment due to the favourable environment for foreign investments, strong industrial tradition and young, high-profile work force.

The Serbian government and Fiat signed an agreement to constitute FAS company on September 29, 2008, as a joint business association in which the Turin-based giant holds a 67 percent share while Serbia has 33 percent stake in the company.