This article is published in association with European Investment Bank.
- The EU bank will support FCA Serbia in adapting its manufacturing process for electric vehicle production.
- The funds will back the green transformation of the automotive industry to help meet the EU climate goals and increase the competitiveness of the local and EU economy.
- The project will enable technology and knowledge sharing among all market players, contributing to innovation and upskilling, while positively impacting the environment and the shift to sustainable mobility.
- The inauguration of new production line set for the future production of battery electric vehicles took place at the modernized Stellantis Kragujevac-based factor
EIB Global, the arm of the European Investment Bank (EIB) devoted to activities outside the European Union, is providing a €73 million loan to Fiat Chrysler Automobiles (FCA) Serbia, part of the Stellantis Group, to modernise, equip and adapt its car manufacturing facility in Kragujevac to produce a new electric vehicle platform. The project aims to support the green transformation of the European automotive industry, increase competitiveness, and enable the transfer of technology and expertise. As one of the largest EU foreign direct investments in the Western Balkans, the funds are also expected to attract additional private capital to the region.
The investments include the integration and deployment of advanced manufacturing solutions, which will make small electric vehicles more affordable and efficient and able to perform better. Furthermore, FCA Serbia will install photovoltaic equipment to produce some of the energy needed at the plant. The company will also upskill and retrain its employees to enable them to operate the new technology. Overall, the project will contribute to the development of a more efficient and sustainable European transport system.
Vice-President Robert de Groot, responsible for EIB activities in the Western Balkans, said: “We are thrilled to be building on our long-standing relationship with the Stellantis Group, marking our second successful collaboration in the Western Balkans. The project aligns well with the EIB’s commitment to decarbonise the automotive sector and contributes to the deployment of breakthrough technologies and knowledge transfer in the region. The investment also promotes economic growth and integration between Serbia and the EU partner countries, which is a key objective for the EIB.”
New Fiat Grande Panda model that is going to be produced in Serbia is the first vehicle on the market to integrate a one-of-a-kind multi-energy platform that can be installed anywhere in the world, as FIAT starts its transition from local-based production to a global offer. Celebrating the successful project implementation, a high-level inauguration event for the new production line set for the future production of battery electric vehicles took place at the modernized Stellantis Kragujevac-based factory.
Chief Executive Officer and Executive Director of Stellantis Carlos Tavares said: “It was a pleasure to be back with Kragujevac teams and union partners to assess the impressive progress achieved since we announced this investment two years ago. This is certainly a moment to acknowledge the commendable performance and dedication of the Stellantis Serbian team. With financing from EIB Global, the JV created in 2008 is entering a new era with the production of the Fiat Grande Panda, its first ever battery electric vehicle, which contributes to providing clean, safe and affordable mobility to citizens around the world.”
As the EU climate bank, the EIB is one of the leading financiers of sustainable, smarter and safer transport across the world, aiming to support innovation and the green transition of the automotive sector.
Background information
About the European Investment Bank and EIB Global
The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to foster EU policy goals. www.eib.org. EIB Global is the EIB Group’s new specialised arm devoted to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnerships within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to local people, companies and institutions through our offices around the world.
About the EIB in Serbia
The EIB has been active in Serbia since 1977, providing finance to support key infrastructure projects as well as small and medium enterprises (SMEs), industry, services and local authorities. Since it began operating in the country, it has enabled close to €8 billion of investment in SMEs and in upgrading transport, education, healthcare and utility infrastructure.
About the EIB in the Western Balkans
The EIB is one of the leading international financiers in the Western Balkans. Since 2010, the Bank has financed projects totalling over €10 billion in the region.
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