In welcoming the Prime Minister, Fiat CEO Sergio Marchionne paid tribute to Serbia's significant program of modernization which has created "a dynamic environment that is attractive to foreign investors. It is a great privilege for Fiat to be able to participate in the country's future growth".

This opening represents the conclusion of three years of extensive and comprehensive work at the 1.4 million square meter site, which included improvements to the surrounding infrastructure, new roofing for the plant, new production shops, land remediation and the installation of world class machinery and production systems. A total of approximately 1 billion euros has been invested at the site,  says Fiat.

The Kragujevac plant will produce the new Fiat 500L, which had its world premiere at the Geneva Motor Show this March. The 500L will be exported to markets in Europe and North America (where it will be the second Fiat model after the existing 500 and its derivatives) with commercial launch planned for the last quarter of this year. The 500L is based on the SUSW platform, a widened version of the Fiat Punto's underpinnings, and it will supersede the Idea in the model portfolio.

By the end of 2012, some 2,400 people will be employed at the plant, Fiat says, plus a further 1,000 with suppliers at the nearby located supplier park. Once fully operational, the plant, which formerly produced Yugo-branded cars, will have a production capacity of up to 200,000 cars per annum. Fiat hopes to produce around 40,000 examples of the 500L by the end of this year, once production gets underway in Serbia in the summer, and, in the carmaker's usual optimistic vein when it comes to projecting targets, it expects annual production to eventually reach over 100,000 units.