|Former type||Government-owned corporation|
|Defunct||November 21, 2008 (now Part of Fiat)|
|Key people||Miljko Erić, Zoran Radojević|
Zastava Special Vehicles
Zastava Automobiles is a Serbian industrial conglomerate based in the city of Kragujevac in central Serbia, currently run as a joint venture between the Fiat Group (67%) and the Serbian government (33%). It is most known for its Fiat-based automobiles, which began assembling in 1955 for Eastern European markets. The firm also manufactures military and sporting small arms, most of them based on Russian and German design, under the name Zastava Arms.
On 28 July 2008, Fiat signed a letter of intent, undertaking to take control of the automobile division, investing €700 million in return for a 70 percent stake in the company (currently owned by the state) and an additional €100 million of investment from the Serbian government. This was later revised to €300 million. Fiat pledged not to cut any jobs and to make good a backlog in wage payments for employees and hinted that the plant may become a dedicated Fiat production site. With this major investment, production is set to reach 330 000 units by 2011.
During the 1970s and 1980s, Zastava sold its compact cars in North and South America and Western Europe under the "Yugo" brand. Its final model, the Yugo Sana, was styled by Italian designer Giorgetto Giugiaro and launched in 1990, but its production was cut short by the Yugoslav wars. By the same time Yugo brand had disappeared from most Western markets by 1993. In 1999, the factory was destroyed by NATO bombing during the Kosovo War.
In December 2007 Serbia announced that Zastava would be privatized in April 2008.
The roots of Zastava lay in the 1851 founding in Kragujevac of the Vojno-Tehnicki Zavod (Army Technical Institute). The institute developed a cannon foundry division in 1853, becoming a military vocational school in March 1854. At the end of the 19th century the cannon foundry changed its name to the Military Engineering Works. The firm rapidly expanded its production program and the complexity and quality of its products. 
After World War II, the plant was renamed Zavodi Crvena Zastava ("Red Flag Institutes"). In a referendum held on 26 August 1953, 96% of the employees of then Zavodi Crvena Zastava voiced their desire to produce automobiles. That year, 162 Willys Jeeps would leave Kragujevac lines.
Fiat 1400 was Zastava's first assembled automobile, but Fića Zastava's licence built version of Fiat 600 is its iconic historical brand. 923487 of Zastava 750 were produced ower span of 30 years, with several different engines and in various equipment levels, from 18 October 1955 through 18 November 1985.
Total vehicle production in 1955 was 1044, by 1958 it rose to 3596. During 1957 and 1958 Zastava established a supplier network. Zastava outsourced engine manufacture to Rakovica-based engine manufacturer 25. Maj (DMB).
Zastava's annual production climbed to 13,719 units in 1960. The company entered the new decade with a replacement for the 1400: Fiat's 1100, shown in Geneva as the successor to the 1100 B.
With the advent of the 1961 1300 and 1500 came Zastava's 1300/ 1500 series, produced as both sedans and wagons. With all-around disc brakes, rear-wheel-drive and up to 72 horsepower, the "tristać" was Yugoslavia's favorite upmarket car. Today, many across the former Yugoslavia recall the 1300 as Zastava's best automobile ever: the Jugoslovenski Mercedes, they call it. 201,160 copies of the 1300 and 1500 were produced from 1961 through December 20th, 1979.
The fića had started life as the 16 kW 633 cc Fiat 600, designed by legendary Fiat engineer Dante Giacosa. In 1962, Zastava began production of the Fiat 600D, badged Zastava 750, boasting an 18 kW 767 cc engine capable of propelling the car to 110 kilometres per hour (68 mph).
The floorpan of the 1300/ 1500 was used as the basis for the Polski-Fiat 125p, which was produced by Polish FSO from Zastava CKD kits. The 125p was created by mating the body of the Fiat 125 to the mechanicals (engines, gearbox, transmission and suspension) of the 1300 and 1500. On the Yugoslav market, the 125p was known as the Zastava 125PZ.
1965 marked the official beginning of Zastava exports, with 6,000 cars sent to Poland.
In 1967, Zastava produced about 52,000 trucks and passenger cars; in 1968, 53,000.
Zastava in this decade signed a new contract expanding production and technological cooperation with Fiat. A $10 million investment pushed annual capacity to 85,000, with plans in place to reach 130,000 units within a five-year period.
In 1969, the Zastava Kamioni (Zastava Trucks) division split from Zastava Automobili and began producing Italy's Om trucks, rated for between 2.5 and 4 tons. Today, Zastava Kamioni continues to make trucks through a partnership with Iveco.
In 1970, Zastava rolled out the 750M, fitted with a new 767 cc engine boasting a thermostat-controlled pressurised cooling system.
In the beginning of the seventies Zastava made arrangement with Fiat to produce Zastava 101 (4cyl, 1116 cc OHC, 55 hp, front wheel drive), which was based on Fiat 128. It had restyled rear panel and resembled a hatchback body style. This 3 and 5 door variant of Fiat 128 was specific to Zastava and was never released elsewhere by Fiat.
It was said that model 101 should be produced in Yugoslavia for both Yugoslav and Italian market, and vice versa, in the Italian market would have been sold under the marque Innocenti. It was soon nicknamed Stojadin as a pun on sto jedan (101) (Stojadin is a male name, although folk etymology also associates it with sto jada, "a hundred woes", due to the poor performance and assembling). In spite of this negative record, the car was a good seller in the domestic market as there was a virtual monopoly. Yugoslavs used to buy it because of its moderate price, simple mechanics, cheap spare parts and low maintenance cost compared to other cars assembled in Yugoslavia.
In 1979, Zastava 750S - (Special) was released which offered updated interior controls and switches, a new steering wheel and a sportier 22 kW engine which raised the car's top speed to 120 kilometres per hour (75 mph).
In 1980, the Zastava 850 was launched, with a 23.4 kW 848 cc engine propelling it to 125 km/h and a fully-synchronized transaxle. Production of the 750 and 850 continued through 1985 in L, LE and SC versions until, finally, the tools were sold to the Tofas factory in Turkey. Tofas continued to produce these cars under Zastava license into the '90s.
In the mid-seventies, Zastava management decided to develop a new model, still based on the same Fiat engine. It was originally to be known as Zastava 102, but the name was dropped in 1981 and the car released as Yugo 45. It was styled by Zastava with some help from Fiat engineers. It was an updated body version of Fiat 127 with some elements of Fiat 128 and it followed the style of the Autobianchi A112 but with a more square appearance. Several variants were made, with 903 cc, 1116 cc, and 1301 cc engines.
Later in the eighties, Yugo was exported to USA and at the same time it went through several modifications, most importantly the adoption of a 5-speed gearbox. In the same decade, Zastava changed its branading name to Yugo and derivative models were renamed: original Zastava Yugo to Koral Zastava 101/128 to Skala. The original numerical classification would remain unchanged for some export markets, as it was the case for the United Kingdom.
These were Zastava's best years in number of cars assembled, around 230,000 cars a year. Zastava cars were to be sold in 70 countries at the time, with 27,000 exported to Western markets. The factory also started to make trucks, under IVECO licence.
In 1988 a new model was released called the Zastava Florida (known as Yugo Sana or Yugo Sana Miami, in some countries). Its exterior was designed by Giorgetto Giugiaro, with a body shape similar to a Fiat Tipo or Citroën ZX.
In the early 1990s, Zastava was affected greatly by the Balkan Crisis. The factory production became unstable because of a problem with supplies. Exports were impossible during those years, because trade sanctions imposed on Yugoslavia. As a result, its cars disappeared from most foreign markets after 1992.
Between 1992 and 1995 it was under UN sanctions, and then between 1998 and 2000 it was under EU and US sanctions. As a result, many of Zastava subsidiaries abroad were forced to cease trading, as it was the case with Zastava (GB) Ltd, in the United Kingdom, and Yugo Cars, in the United States.
In 1999, during the Kosovo War, NATO bombed the Zastava Automobiles plant in Kragujevac as it was considered a threat to peace since Zastava Arms infrastructure was also located on site. Zastava Arms makes rifles and pistoles. Nevertheless, the bombing did not completely halt the production, as there were still three working shifts even during the height of NATO bombing (Zastava factory has operated continuously since it was built). Some of the car manufacturing buildings were damaged and workers injured.
After the war, there were trade talks with Hungarian firms to assemble Yugos in Hungary, but no agreement was reached because of the Yugoslavian partner's hesitation. However, Zastava Trucks are assembled in Hungary, near Pécs, with IVECO engines.
Yugos were face-lifted and new versions are introduced in the Belgrade International Motor Show in 2002. The new Yugo Koral IN had a 1,3l 80HP motor with BOSCH electronic injection, the transmission designed by Porsche, slightly new internal and external design, improved safety, and lots of extra details which were missing from former models.
The new generation of Yugo was granted a FIA certificate, so it was in compliance with European standards.
In October 2000, Vojislav Koštunica became the new president of Yugoslavia (also a Yugo Koral owner) and soon after the sanctions against the country were lifted the export resumed. The production had fallen to a mere 9 percent of its pre-1990 230,000 vehicles annual capacity, with exports to around 4000 vehicles. The new Yugoslav government a $50 million reorganization effort in cooperation with the World Bank, which resulted in mass layoffs, and its intention to privatize the company.
A new prototype for the Yugo Florida, known as Florida 2.0, was made, equipped with the same engine as in Fiat Bravo 2.0.
Optional features include dual front airbags and air conditioning, as well as power windows. Although the Zastava 10 is Zastava's newest and best model, it faces fierce competition in its home market against cars like the Volkswagen Polo. However, it has some advantages over many of its rivals, including price. As of December 2007, prices of the Zastava 10 start from Euro 7,550 in the Serbian market. In March 2007, the Zastava 10's share of the Serbian car market was 11% and the company started exporting cars to former Yugoslav republics in the first half of 2007 and, with plans to add to Bulgaria and Albania as well.
Production of all Zastava cars (Yugo, Skala 101 and Florida) has ended on or before November 20, 2008. After that day only car in production will be Zastava 10 which will change name to Punto.
CEO of Zastava cars Zoran Radojević has declared that the company has received offers from African countries for technology transfer. It is believed that Congo is interested in starting production of the Zastava Florida and Egypt of the Zastava 128.
Cancelled project: Zastava Motor Works (ZMW)Edit
In 2002 the American entrepreneur Malcolm Bricklin, who had previously imported Yugo into the United States, signed a deal with Zastava to re-introduce the company's products back into America. Bricklin's intention was to sell the cars for less than $10,000, under the brand name ZMW (as in Zastava Motor Works) which in the United States would, of course, be pronounced Zee-M-W. However, even though a website proclaiming the brand's arrival was produced by Bricklin's company, by 2006 his intentions had switched to importing products from Chinese car maker Chery instead.
Zastava automobiles have been sold and exported in Serbia, Montenegro, Croatia, Macedonia, Greece, Lebanon, Libya, Syria, Tunisia, Poland, and Egypt (where Zastava cars are produced under the marque of the state owned Nasr car company).
In October 2005, an agreement with Fiat was reached for production of the Fiat Punto by Zastava for Eastern European markets, which would be commercialized as the Zastava 10. The Koral IN L, with a fuel injected 1.1 L Peugeot engine, met the European Union safety standards in a test supervised by the German Technischer Überwachungsverein (Technical Monitoring Association). This may pave the way for export to E.U. countries.
In addition to the Zastava 10, Zastava is currently negotiating with Fiat for the production rights to another model not yet in production, a C-segment sedan, codenamed Project D200, to be manufactured for Fiat by Zastava and/or Tofaş of Turkey. It will compete with the Dacia Logan.
2008 memorandum of understanding between Fiat and ZastavaEdit
Fiat Group Automobiles (FGA) unit has signed a memorandum of understanding with the Serbian government for the acquisition of Zastava's Kragujevac plant on 7 May 2008. The memorandum of understanding foresees a new company being set up in which the Italian group would have a 70% percent stake and the Serbian government retaining 30% percent.
The new company would make a total investment in the region of 700 million euros, with the government contributing 200 million euros to this. The Zastava plant will produce two new Fiat models, rejecting recent reports the plant could produce the 500 compact city car.
The last Zastava branded car rolled out of the factory 21 November 2008.
List of Zastava vehiclesEdit
Cars produced by the Zastava factory in Kragujevac (in Serbia) :
- Fiat Campagnola - 1953-1962. 9,089 built without modification.
- Fiat 1400 - 1954-1961, without modification.
- Fiat 1100D - thousands produced.
- Zastava 750 (later 850), nicknamed "Fića", 1955-1984. 923,487 produced with some modification.
- Fiat 615 - medium truck produced by Zastava Kamioni from 1957-?. 36,000 built.
- Fiat 1300/1500 - 1962-1979. 201,160 without modification.
- Fiat 850 - thousands produced.
- Fiat-OM 40 - 1969-?
- Zastava 101 - Fiat 128 based with many body modifications. 1971-2008. 1,273,532 built. Many built in Egypt by Nasr.
- Zastava Skala - 1980-2008
- Yugo 45 - 1980-2008. 750,000 built. More than 150,000 cabrios exported to the USA. Global production: 794,428.
- Fiat Daily - 1991-? IVECO owns 46% of Zastava Kamioni.
- Zastava Florida - ceased in November 2008, more than 160,000 units built. 29,950 second series built.
- Zastava Z10. Production started in 2006; 100 units daily.
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- ↑ "Fiat to start making 200,000 cars in Serbia in 2010", reuters.com (2008-09-29). Retrieved on 2008-12-06.
- ↑ "Fiat Investing $1b into Zastava". macedoniaonline.eu. Retrieved on 2008-11-29.
- ↑ "Serbia puts carmaker Zastava on sale". autonews.com. Retrieved on 2007-12-28.
- ↑ "Zastava Automobili:". Zastavanacionale.com (2008-08-26). Retrieved on 2009-07-08.
- ↑ 5.0 5.1 5.2 5.3 "Zastava Automobili: 1950s". Zastavanacionale.com. Retrieved on 2010-09-27.
- ↑ 6.0 6.1 6.2 6.3 6.4 "Zastava Automobili: 1960s". zastavanacionale.com. Retrieved on 2008-12-06.
- ↑ All Our Dreams Were Destroyed - Meeting and tour of Zastava factories in Kragujevac
- ↑ "The Skoda Model". globalpolitician.com. Retrieved on 2008-12-06.
- ↑ "Zastava: End for Yugo, Florida and Skala". emportal.rs. Retrieved on 2008-12-06.
- ↑ "Entrepreneur plans U.S. comeback for the Yugo". invest-in-serbia.com. Retrieved on 2008-12-06.
- ↑ "Yugo Redux". forbes.com. Retrieved on 2008-12-06.
- ↑ "Chinese autos to land in area dealership". dispatch.com. Retrieved on 2008-12-06.
- ↑ "ZASTAVA 10". zastava10.com. Retrieved on 2008-12-06.
- ↑ "ZASTAVA-AUTO.DE - BELGRAD SHOW 2006". zastava-yugo.de. Retrieved on 2008-12-06.
- ↑ "Fiat signs agreement with Serb govt to acquire Zastava's Kragujevac plant". CNBC (2008-04-30). Retrieved on 2008-04-30.[dead link]
- ↑ "21.11.2008 NEW CHAPTER OPENS FOR ZASTAVA AS LAST CARS ROLL OFF THE PRODUCTION LINES". italiaspeed.com/2008. Retrieved on 2008-11-22.
|Zastava, a subsidiary of Fiat Group, road car timeline, 1955–2008|