The Zastava 10 - a Fiat Punto which will be built under license in Serbia from the end of next year - has made its official public debut this week during the 5th Novi Sad Car Show.

Late last month Fiat Auto, and Serbia's state-owned car manufacturer Zastava, announced that after months of tortuous negotiations, agreement had finally been reached for the Kragujevac-based firm to assemble the existing Fiat Punto third series model under license. Zastava would spend around 15 million euros to bring their dilapidated factory up to the standard required, with full production targeted to commence in around 9-12 months.

In the meantime, the first 7,000 cars - which will be badged as the Zastava 10 - will be assembled at Fiat's giant Mirafiori factory in Turin between now and December 2006, with the Serbian carmaker's workers attending the Italian factory during this period for training purposes. Initial production in Kragujevac will see 500 cars a month being built, although Zastava are targeting eventually annual production of 18,000 units.
 

For the moment the new Zastava 10 will only be offered with Fiat's 60bhp 1.2-litre petrol engine, although the licensing agreement will allow for the 1.9-litre 16v Mulijet to be fitted in the future.  The car, which will be well equipped like Western European variants will feature power steering, front airbag, electric windows and air-conditioning standard, and is set to be priced at 7,990 euros.

Zastava's General-Director Zoran Radoevic introduced the new car during a press conference in the Ceremonial Hall at the 5th Novi Sad Car Show, announcing that the Punto-based model will go on sale within a few days. The Novi Sad Car Show - which runs from today until Sunday - is Serbia's leading motor show and manufacturers attending include Audi, BMW, Chevrolet, Citroen, Dacia, Ford, Hyundai, Kia, Lada, Mazda, Mercedes, Nissan, Opel, Peugeot, Renault, Seat, Suzuki, Toyota and Volkswagen.