The Italian papers have news of disputes at the Kragujevac plant in Serbia, where 500Ls are made. Good news - demand is so strong, especially with exports to the 'States starting, that a second shift has been introduced: bad news - the production workers are objecting to the shifts, complaining about their wage levels, objecting to the fact that all the managers are Italian, and 31 vehicles have been damaged on the production line.

This is a great shame. It looks like the 500L is a car to be avoided if the workforce is sabotaging it.

Fiat should have built it in Italy in the first place.

Ulpian said:

This is a great shame. It looks like the 500L is a car to be avoided if the workforce is sabotaging it.

Fiat should have built it in Italy in the first place.

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The EU put up billions of euros to have the factory built in Serbia...

Not much point though if the product gets a name for sabotage and the public avoids it like the plague. I hope Fiat gets the problem sorted very quickly, but the mindset of damaging the product you are making, on which your job depends, is one I find very hard to understand.

And aren't the US 500ls being built in Mexico, or are the first ones coming from Europe? The American ones have the 1.4 turbo 160hp engines, which are in the Dodge Dart and some Americans don't much like because of the torque characteristics, preferring the 1.7 non-turbo Alfa engine, which isn't available of course . But at least the Americans get the option on the Dart of a 2.00 non-turbo engine.

Ulpian said:

Not much point though if the product gets a name for sabotage and the public avoids it like the plague. I hope Fiat gets the problem sorted very quickly, but the mindset of damaging the product you are making, on which your job depends, is one I find very hard to understand.

And aren't the US 500ls being built in Mexico, or are the first ones coming from Europe? The American ones have the 1.4 turbo 160hp engines, which are in the Dodge Dart and some Americans don't much like because of the torque characteristics, preferring the 1.7 non-turbo Alfa engine, which isn't available of course . But at least the Americans get the option on the Dart of a 2.00 non-turbo engine.

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Apparently a ship has just arrived at Halifax with 3000 500Ls exported from Serbia.

First ones form Europe then.

Perhaps they all will be. There is confusion in the American press over this one.

Apparently a ship has just arrived at Halifax with 3000 500Ls exported from Serbia.

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Apologies. The 500L for the US is going to be built in Serbia.

I just hope they get any labour problems sorted before they go on sale, because otherwise the American 'Fix It Again Tony' mantra will come alive and do very real damage to the whole company.

I'm a bit concerned by this news.

I'm a bit confused by this thread as there is a well documented history of this and non of it is as above

The factory is the old Zavasta its not new its been knocking out the punto mk2b since 2005 as the 'fiat punto classic' fiat invested 700million of their own money not the EU, Serbia isn't even currently part of the EU.

In 2008 fiat did a deal with the Serbian government to buy a large stake in the factory while the Serbian government retained a 30% stake.

When fiat wanted to put the 500L into production there were already work force issues in Turin so fiat planned to move production to Serbia.

The Serbian government were happy however fiat stopped production of the punto classic which the Serbian government were not very happy about, as it was one of the countries best selling and most affordable cars, about a third of the cost of a 500L, so they forced fiat to put the punto classic back into production in order to continue to be allowed to produce and export the 500l (which only started again recently) as a result this seriously soured the relationship between the Serbian government, the Serbian workers and fiat which has lead to the recent unrest.

In avoiding work force problems and cutting costs they created bigger workforce problems and an inferior quality product.

Fiat may have shipped 3000 units but they may be only part built awaiting us supplied parts and engines, I seem to think they did a similar thing with the Ducatto van which is rebranded as a dodge in the us

AndyRKett said:

I'm a bit confused by this thread as there is a well documented history of this and non of it is as above ......

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You'd better write to the industrial correspondent of "La Repubblica" - best selling and probably most authoritative daily in Italy - and tell him.

Turning the old Zastava plant into a modern production facility cost billions and the EU put up a heap of our money to help.

In avoiding work force problems and cutting costs they created bigger workforce problems and an inferior quality product.

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This is the salient point as far as I am concerned. Fiat would have been better off dealing with Italian labour than with the Serbs, where they seem to be caught between a government/labour pincer movement, which appears to be hurting the finished product.

I also remember reading somewhere that the EU had put up money for the plant, possibly as a softening up ready for Serbian EU membership?

But at least the situation isn't as bad as in the Suzuki factory in Mumbai, where angry workers murdered the plant manager (decapitated him apparently) last year and production was shut down for a long time.

Having said that, I'll repeat that if the 500L gets a name for being badly made the upset in the US will lead to serious ramifications which might even affect Fiat's take over of Chrysler, which is being negotiated now.

PS. I've just found this ...

http://cars.uk.msn.com/news/fiat-employee-vandalises-31-500l-models

AndyRKett said:

Fiat may have shipped 3000 units but they may be only part built awaiting us supplied parts and engines, I seem to think they did a similar thing with the Ducatto van which is rebranded as a dodge in the us

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There wasn't a production reason for that, it was a tax dodge there is a protectionist tax on fully built commercial vehicles imported into the USA. Doesn't apply to passenger cars.

The 500Ls are complete - see

http://www.quattroruote.it/notizie/auto-novita/fiat-500l-la-mpv-debutta-in-nordamerica

which shows them being driven off the ship. They all have the 1.4 MultiAir turbo - 160 HP and 250Nm and six speed gearbox with option of standard or twin-plate clutch.

The 500L Trekking appears in limited numbers this month in Italian showrooms.

Ulpian said:

Apologies. The 500L for the US is going to be built in Serbia.

I just hope they get any labour problems sorted before they go on sale, because otherwise the American 'Fix It Again Tony' mantra will come alive and do very real damage to the whole company.

I'm a bit concerned by this news.

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do not be concerned. Like first cars for USA gone long before problems occur.
problems with Serbian workers on 500L car was just few scratches on doors, newspaper and reporters had to add something to make news more juicy.
those workers are some old "workers" who liked pass time, when they got paycheck but didn't work anything, now when Fiat came they force to work and earn your money they want to show how low money they get for work.
Trust me all in Serbia do not support that action, if they think that paycheck is small let go and find other job and let people who want to work.

I just got 500L 7 days ago and I love it.

(sorry for bad english)

Interesting - there are politics at work, of course, with the Italians only too happy to suggest that putting the production in Serbia was a mistake.

Thanks for making contact - your English is fine. Hope the 500L works well for you.

Just to clear some things....

The factory in Serbia is completely new. Yes, there was Zastava automotive factory there but FAS (Fiat Serbia) built the new factory from scratch. 70% is owned by Fiat and 30% is owned by Serbia. No EU money was ever spent for this particular joint-project like someone suggested in this thread ( I wonder where he/she got that information or is there any hidden agenda? ). All money came from Fiat and Serbia.

About 500L production. Not all is white and black. There are some issues with unions but all is being sorted out. There were also some issues with Italian born boss who was treating workers like sh!t, etc...That particular person was sent home to Italy, mind you. Maybe you don't know but damages on production lines are quite common in Europe. You always get some frustrated people who do bad things. Fiat had huge problems in Poland at the beginning with intentionally damaged cars. If you buy a new car there is little chance to get damaged car due to quality control at the end of the line, so don't worry....

puntio said:

Just to clear some things....

The factory in Serbia is completely new. Yes, there was Zastava automotive factory there but FAS (Fiat Serbia) built the new factory from scratch. 70% is owned by Fiat and 30% is owned by Serbia. No EU money was ever spent for this particular joint-project like someone suggested in this thread ( I wonder where he/she got that information or is there any hidden agenda? ). All money came from Fiat and Serbia.

...

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Why would I have a hidden agenda? The information came from an article in the Italian daily La Repubblica which generally has good sources and reliable correspondents. Assuming you're correct - and I have no reason to doubt it - it's good to have the facts.

babbo_umbro said:

The EU put up billions of euros to have the factory built in Serbia...

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Hi babbo_umbro,

this statement alone is fishy. I mean, "billions of euros". Factory as it is currently hardly cost a billion. Obviously your sources are wrong or you misread or misunderstood something. This investment is pure Fiat+Serbia (70:30). No EU money there....

puntio said:

Hi babbo_umbro,

this statement alone is fishy. I mean, "billions of euros". Factory as it is currently hardly cost a billion. Obviously your sources are wrong or you misread or misunderstood something. This investment is pure Fiat+Serbia (70:30). No EU money there....

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I've obviously struck a nerve here - I've already stated that I welcome correction of any inaccuracies, but that doesn't seem to be sufficient. I wonder why.....

babbo_umbro said:

I welcome correction of any inaccuracies, but that doesn't seem to be sufficient.

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you weren't so welcoming when I pointed out your inaccuracies? I Wonder why.....

babbo_umbro said:

I've obviously struck a nerve here - I've already stated that I welcome correction of any inaccuracies, but that doesn't seem to be sufficient. I wonder why.....

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I couldn't find anything about EU funding the FAS factory in Kragujavac, Serbia in Italian media.

It seems that the particular factory struck YOUR nerve so you go and make things up

"Billions of euros".... he he he. Don't worry those damn Serbs are not stealing your money. What is probably shocking for you is that they produce a product of superior quality at the moment...and that my friend probably hurts. Am I right?