Zastava to produce Opel Vehicles

Reuters report, General Motors has contracted a dealbusiness operation of the international automotive
with Zastava automaker for the production of Opelindustry."
vehicles. Production will transpire at Zastava's complexAnd the latest development on this issue is that the
in Kragujevac in central Serbia.Serbian government has already approved the import
According to the source familiar with the agreement,of around 8,300 duty-free Opel Astra cars of which
"They will sign on Thursday. The production of the first3,300 are to be imported by the end of this year while
Opel Astra vehicles is expected to start in 2008."the remaining 5,000 by 2008. These imported Opel
Another source familiar with the negotiation has alsoAstra cars will cost 10,800 euros or $14,900 for the
confirmed the deal. Last year the state-ownedbasic version which was previously sold at 12,800
Zastava, exporter of Yugi cars to the United Stateseuros or $17,700.
was only able to produce 15,000 cars which is lessOpel Expands Antara Range
than its annual capacity of 60,000 vehicles. ZastavaSpeaking of Opel, it has recently announced the
also caters to Italy's Fiat producing the Punto cars.expansion of the engine range of its Antara Sports
These Punto cars are marketed in Serbia and the restUtility Vehicle with a diesel version that will come
of the neighboring Balkan countries under the brandequipped with a particulate filter and an Opel catalytic
"Zastava 10". Zastava was also given by Fiat theconverter. The two liter motor produces 110kW/150hp
authority to distribute the cars on the Russian market.and can accelerate from 0 to 100 km/h in a matter of
Reuters has quoted a government source saying,10.3 seconds.
"The deal with General Motors will enable Zastava toThe fuel consumption is at 7.5 liters per 100 kilometers
work with modern technology, raising its chances ofwhile carbon dioxide emission level is at 198 grams per
fully benefiting in the coming privatization process."kilometer. The integrated Flex-Fix bicycle carrier is
Serbian Deputy Prime Minister Bozidar Djelic said thatcurrently the optional offering for the Antara. This
the Serbian automaker is aiming to produce aroundspecial feature can be pulled out just like a cupboard
10,000 vehicles by 2010. He also said, "This contract isand can accommodate two bicycles. It is priced at 650
good for Kragujevac and domestic car industry,euros or $900.
because we thus join the trends of technology and