At its tenth session, on 23 June, the Industry Committee discussed the situation in the auto industry and the problems facing it. Representatives of the Ministry of Economy also took part in the session.

The deputies were informed of the official view of the Government of the Republic of Serbia, that the auto industry had to be preserved and that it was essential to find strategic partners.

The problem of debts incurred by Kragujevac-based Zastava automobili with the Italian car maker Fiat and with banks now in receivership was presented to the deputies; it was added that privatisation was possible only after this issue is resolved.

Ministry representatives informed the Committee on car production, subsidies and problems with the industry’s employees, as well as of the Government’s Leasing Programme, which would boost sales of domestic cars.

It was agreed that the Committee should visit car factories and get immediately acquainted with their problems.