Presidential candidate Boris Tadic, who up until recently held office as the Serbian president, conferred with FIAT-Chrysler Director General Sergio Marchionne on Monday, ahead of the official opening of Fiat Automobili Srbija (FAS) factory.

During the working meeting with at the Belgrade Fortress, Tadic and Marchionne discussed the plans for further development of FAS factory. FAS is the joint project of the Serbian government and Italian Fiat and represents the biggest investment in Serbia in the past few years. The value of the project totals EUR 1 billion and it should contribute to the recovery of the local economy.

The project in Serbia was funded in the same proportions and revenues would be distributed according to the same principle. The Kragujevac-based factory was designed for production of around 300.000 automobiles annually and currently has the equipment to produce 200.000 vehicles.

The Kragujevac complex covers around 1,4 million square metres, of which roofed facilities cover several hundred thousand square metres, which is the biggest plant of its kind in south-east Europe. To support the FAS factory in Kragujevac, Fiat's traditional suppliers and subcontractors are situated in the same city, including Magneti Marelli, Sigit, HTL and Johnson Controls, which built their facilities at the site of the former military barracks in Grosnica and the land was transferred to the company by the Serbian Defence Ministry.

FAS Director General Antonio Cesare Ferrara announced earlier that the serial production of Fiat 500 L model would begin in the Kragujevac factory in the course of next month. Marchionne stated that Fiat would sell 160.000 Fiat 500 L automobiles at the International Geneva Motor show next year