Mercedes includes Serbia as possible location for its future automobile factory

Mercedes started talks with Serbian authorities about the possibility to open its automobile factory there. Serbian authorities declare that they can offer even more advantageous conditions than they would receive in Romania, the Czech Republic or Poland, Serbian website b92.net reads. Serbia plans to become the South East European car-making hub after Fiat bought the Zastava factory and promised to produce some 300,000 cars per year there.

Serbian Economy minister Mladan Dinkic said that his country was ready to offer Mercedes free land with all utilities included and a tax exemption statute. Moreover, Serbian officials promise subsidies which amount to 20% for investments over 200 million euro which would create at least 1,000 work places.

Mercedes plans to open a factory in one of the previously named countries and the press has been speculating on the final decision or the desired location. Romanian businessman Ion Tiriac recently declared that in about three weeks Mercedes will take a final decision.