GM seals Opel deal with Serbia's Zastava

BELGRADE, July 17, 2007; Reuters reported that General Motors Corp. has agreed a deal with Serbia's Zastava for the local production of Opel vehicles, sources close to the deal told Reuters on Tuesday.

Germany-based Opel is part of the GM group. The cars would be assembled in Zastava's complex in Kragujevac, central Serbia.

"They will sign on Thursday," one source told Reuters. "The production of the first Opel Astra vehicles is expected to start in 2008," the source said.

A second source close to the negotiations also confirmed the deal to Reuters.