Stellantis starts production of electric Fiat Panda in Serbia
The international automotive company Stellantis has commenced trial production of the Fiat Grande Panda electric car in Kragujevac, Serbia. Serial production is scheduled to begin in October. The launch event was attended by Serbian President Aleksandar Vučić and Carlos Tavares, CEO of Stellantis, the group formed by the merger of Fiat Chrysler Automobiles (FCA) and the French PSA Group.
Serbia will become the first country in the Balkans to mass-produce electric vehicles. The modernization of the Kragujevac factory for this purpose took two years and cost EUR 190 million. Serbia supported Stellantis with a EUR 48 million grant, and the president mentioned that next year’s production is expected to boost the country’s GDP by about 0.5 percentage points.
Currently, around 1,000 employees operate the factory’s automated lines, with the number likely to increase once serial production starts. The new Fiat Grande Panda will be sold in Europe, the Middle East, and Africa. Initially, only the electric version will be produced, but a hybrid model is planned for the future. The starting price for the fully electric version is below €25,000, with a potential cost of around €18,000 in Serbia due to state subsidies of up to €7,000.
Stellantis is ready to face competition from China
Carlos Tavares, CEO of Stellantis, acknowledged the competitive challenge posed by Chinese electric cars, which are about 30% cheaper than their European counterparts due to lower production costs. Despite this, Stellantis aims to attract customers with superior quality and innovative solutions. Tavares described the Chinese market entry as “brutal” and expressed confidence in Stellantis’s ability to compete strongly in the e-mobility sector.
Additionally, last week’s agreement between Serbia and the EU to secure some of Serbia’s lithium deposits for European production could enhance the competitiveness of the European automotive industry. Serbia holds some of the largest lithium deposits globally, and the agreement is expected to draw new investors to Serbia’s emerging electric vehicle industry and positively influence the country’s EU accession negotiations.
Source: balkangreenenergynews.com