Italian car manufacturer Fiat has opened a new assembly plant in Kragujevac, Serbia to ramp up its production of 500L vehicles up to 200,000 lakh per annum.
The new production line is reportedly built with an investment of $1.3bn by upgrading and refurbishing the old Zastava car factory in Kragujevac, which was used to produce Yugo - a boxy little model.
Fiat said the four-door 500L is a multipurpose vehicle, which is designed to be large in its size, and is ecological and simple to drive.
The car is designed to appeal to markets on both sides of the Atlantic and is set for an autumn launch at a base price tag of EUR16,000.
The 1.4 million square meters Kragujevac plant will house 2,500 employees and provide indirectly employment to another 10,000 people.
