Serbian Automotive Industry Expected to Grow This Year Despite Challenges
The production of the electric Fiat Grande Panda in Kragujevac, Serbia is delayed by months. The car was officially introduced in July, but has not yet begun production. Initially, it was planned to start producing the car in the fall, and now the earliest possible date for the start of production is the end of January.
Despite the delay, Serbian President Aleksandar Vucic believes that the automotive industry will see a “tremendous growth” this year. He cites the Fiat Panda as one reason for this expected growth. However, Vucic also mentions that there may be problems with suppliers due to declining production in Europe.
Economist Uros Delevic is skeptical about the prospects of the Serbian automotive industry. He notes that Serbia’s economy is closely tied to European economies, which are experiencing decline. This makes it difficult for Serbia to achieve significant growth in this sector.
The success of the Fiat Panda will depend on its performance in European markets. Journalist Zoran Radovanovic from Kragujevac believes that the car may do well in France due to favorable subsidies. However, he notes that sales may be lower in Germany and the Netherlands, where subsidies are less generous.
The president’s promise of growth has sparked concerns about potential layoffs in Serbia. Vucic mentioned that Germany cannot afford to lay off 70,000 workers while Serbia can still cooperate with German industry. This phenomenon is known as “jobless growth” or growth without employment due to increased productivity.
To address these concerns, the Serbian government will offer a subsidy of 5,000 euros for the purchase of the electric Fiat Panda from Kragujevac. Additionally, severance pay will be prepared in case of potential layoffs.