BELGRADE (Bloomberg) -- Fiat S.p.A. will expand its Serbian investment over the next two years with plans to produce another vehicle in the Balkan country. The model should debut at the Geneva auto show in 2012, the Novosti newspaper reported, citing Deputy Prime Minister Mladjan Dinkic.
The new vehicle will seat as many as seven passengers and will be produced along with the Punto subcompact already assembled at the plant in Kragujevac, central Serbia, the newspaper said.
The expansion will bring Fiat investment to 944 million euros ($1.2 billion) from about 800 million euros previously, Dinkic was quoted as saying.
The government, which set up Fiat Srbija as a joint venture with the Italian carmaker two years ago, will also support expansion with own investment in infrastructure, Dinkic said, according to Novosti.