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Fiat to take over Zastava plant in Serbia

05/02/2008, 9:14 AM

By Drew Johnson

Fiat and the Serbian Ministry of Economy and Regional Development inked a deal earlier this week that will see the Italian automaker take over the former Zastava plant in Kragujevac, Serbia. Zastava began producing vehicles for Fiat in 1955 and is most famous for producing the Yugo.

Fiat will use the plant as its main assembly hub for central and eastern Europe. The plant will produce an all-new model — dubbed the Topolino — which will ride on the same platform as the Fiat 500 and Panda. The Topolino — a throwback to the Topolino small car first introduced in 1936 (pictured) — will be a two-seater that will slot below the 500 and Panda and will measure about 18 inches longer than the Smart ForTwo.

According to Automotive News, Fiat will invest a hefty 700 million euros in the old Zastava plant to bring it up to modern standards. The Serbian government will kick in another 200 million through tax breaks and incentives.

The Kragujevac plant should be producing 200,000 Fiats annually by the end of next year, with that number ramping up to 300,000 by 2010 when the new Topolino comes online. Fiat plans to build an up-scale version of the Topolino for the Lancia brand at the Serbian plant, too.

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05/02, 9:17 AM

posted by:

Madcapp

Alright, maybe there will be a new Yugo to go with the current crop of retro cars.

05/02, 9:32 AM

posted by:

HemiRoadRunner

Will it come with the optional radio that can’t clearly tune into a local station and door handles that break off when you shut the door?

05/02, 9:35 AM

posted by:

howsmydriving

The upscale version of the Fiat Topolino should be called the Fiat Rat.

05/02, 9:42 AM

posted by:

howsmydriving

YUGO = You Undergo Grief Ordinarily

05/02, 12:42 PM

posted by:

DeansterTJ

In the 1980’s there were tons of Yugo’s/Zastavas running around Greece. As an hommage to the brand, Fiat should create a special Zastava edition of the Topolino, paint it fluorescent orange.

05/02, 2:14 PM

posted by:

LDMAN

Fiat’s doing better than GM or Ford. Remember how people used to make fun of Honda or Hyundai.
http://legacygt.com/forums/showthread.php?t=87279

05/02, 7:13 PM

posted by:

TOZO

Take that, Yugo! You got OWNED! (by fiat)

05/05, 11:12 AM

posted by:

planet_drive

Serbians are just a bunch of evil violent freaks. I thought the Yugo factory got bombed? **** the serbians, I had the unfortunate opportunity to visit that country and everyone there is very anti west, pro russian, and even the young people think it was great how their government brutally killes so many innocent people, including children that were burried alive with their parents. Yugo’s are **** cars built by **** people.

 
 
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