FIAT is on track for 2011 rollout of new car at plant outside of Belgrade

Belgrade, Serbia – September 25, 2009* – Final preparations for the production of a brand new FIAT automobile in Serbia will be executed within the next few months, Deputy Prime Minister Mladan Dinkic said Thursday, meaning the car should begin rolling off production lines on schedule, in early 2011.

Mr. Dinkic, addressing a Serbian-Italian delegation representing more than 100 Italian companies, exhorted the executives to broaden their foreign investment interests and expand into other areas of the Serbian economy. Serbia’s low tax rate, skilled workforce and geographic location has made it a magnet for Italy-based businesses – more than 200 Italian companies employing some 18,000 people have operations in the country already. The country’s business incentives, which typically include providing land and infrastructure as well as roughly $7,500 in cash incentives for each new job created. FIAT, which received these incentives, plans an initial $1.2 billion investment in Serbia to produce the new car model from a factory in Kragujevac.

Mr. Dinkic met in Belgrade on Thursday with his Italian counterpart, Minister Urso to discuss other possible investment opportunities. Mr. Dinkic said he will travel with Serbian President Boris Tadic to Turin, Italy in early November to meet with FIAT Group President, Sergio Marchionne and examine a prototype of the new Serbian-produced FIAT model.

Mr. Dinkic’s speech came at the opening of the “Investment Opportunities in Serbia” forum, which was attended by more than 20 Italian auto parts suppliers. Many of those executives are FIAT suppliers and arrived with concrete requirements for sites to build their factories in order to supply FIAT’s Serbian operation.

FIAT’s Serbian operation is expected to directly create 10,000 jobs.