EIB Grants €73M Loan to Stellantis' FCA Serbia for Electric Vehicle Production

The investments include integrating and deploying advanced manufacturing solutions to make small electric vehicles more affordable, efficient, and better performing.

EIB Global, the branch of the European Investment Bank (EIB) focused on activities outside the European Union, is providing a €73 million loan to Fiat Chrysler Automobiles (FCA) Serbia, part of the Stellantis Group. The loan will be used to modernize, equip, and adapt the car manufacturing facility in Kragujevac for the production of a new electric vehicle platform. This project aims to support the green transformation of the European automotive industry, enhance competitiveness, and facilitate the transfer of technology and expertise. As one of the largest EU foreign direct investments in the Western Balkans, the funding is also expected to attract additional private capital to the region.

The investments include integrating and deploying advanced manufacturing solutions to make small electric vehicles more affordable, efficient, and better performing. FCA Serbia will also install photovoltaic equipment to generate some of the energy needed at the plant. Additionally, the company will upskill and retrain its employees to operate the new technology. Overall, the project will contribute to developing a more efficient and sustainable European transport system.

Robert de Groot, Vice-President responsible for EIB activities in the Western Balkans, stated: “We are thrilled to be building on our long-standing relationship with the Stellantis Group, marking our second successful collaboration in the Western Balkans. The project aligns well with the EIB’s commitment to decarbonize the automotive sector and contributes to the deployment of breakthrough technologies and knowledge transfer in the region. The investment also promotes economic growth and integration between Serbia and the EU partner countries, which is a key objective for the EIB.”

The new Fiat Grande Panda model, set to be produced in Serbia, will be the first vehicle on the market to feature a unique multi-energy platform that can be installed globally. This marks FIAT's transition from local-based production to a global offer. Celebrating the successful project implementation, a high-level inauguration event for the new production line for battery electric vehicles was held at the modernized Stellantis factory in Kragujevac.

Carlos Tavares, Chief Executive Officer and Executive Director of Stellantis, remarked: “It was a pleasure to be back with Kragujevac teams and union partners to assess the impressive progress achieved since we announced this investment two years ago. This is certainly a moment to acknowledge the commendable performance and dedication of the Stellantis Serbian team. With financing from EIB Global, the joint venture created in 2008 is entering a new era with the production of the Fiat Grande Panda, its first-ever battery electric vehicle, which contributes to providing clean, safe, and affordable mobility to citizens around the world.”

As the EU climate bank, the EIB is a leading financier of sustainable, smarter, and safer transport worldwide, aiming to support innovation and the green transition of the automotive sector.