The Serbian government said in a statement yesterday that a joint stock enterprise Fiat Cars Serbia had been formed and registered at the Agency for Commercial Registers on Tuesday, in keeping with the Balkan state's law.

The Serbian government said in a statement yesterday that a joint stock enterprise Fiat Cars Serbia had been formed and registered at the Agency for Commercial Registers on Tuesday, in keeping with the Balkan state's law.

The foundation and registration was preceded by a Serbian government session, held over the phone, where a contract on the establishment of the Kragujevac-based joint stock company Fiat Cars Serbia JSC was adopted, on the basis of a Joint Investment Contract between Serbia and the Fiat Group. Serbia has 33 percent of the company and Fiat Group 67 percent.

The initial equity amounts to 700,000 euros, out of which Fiat Group will pay 469,000 euros and Serbia on Tuesday paid the counter-value of 231,000 euros in dinars. The remainder of the equity will be paid by the Fiat Group and Serbia by spring 2009 at the latest, in keeping with the Joint Investment Contract, concluded on September 29. Fiat's total investment in the new company, under the Contract, will be 200 million euros in money, while the investment of the Republic of Serbia will be 50 million euros in money and 50 million euros in objects and rights.

The Managing Board of the Joint Stock Company has seven members, two of whom represent Serbia - Serbian president's advisor Biserka Jeftimijevic Drinjakovic and Serbian deputy prime minister's advisor Luka Andric. The remaining five members represent Italy's Fiat - Fiat Group Vice President Alfredo Altavilla, new company Fiat Cars Serbia Director Giovanni De Filippis, Fiat Group Vice President in charge of production Stefan Ketter, Fiat Group Cars Financial Director Richard Palmer and Fiat Group Cars International Operations Director Silverio Bonfiglioli, it was said in a statement issued by the Serbian government.