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Nicolas Marquier, Regional Manager for the Western Balkans at the IFC

Financing the Future

IFC, the largest global development institution, has provided almost $1 billion in financing to Serbia’s private sector over the past six years IFC, as a...

Iosif Vangelatos, General Manager, Inos Balkan

Proud of Tripling Trade Volume

Inos Balkan already possessed extensive expertise in the recycling sector, with its collection and processing centres, while it has today transformed itself successfully to...

Aris Karousos, CEO of Eko Serbia

Drivers Know Why They Choose Eko

Two decades ago, when this company launched its operations in Serbia, the desire was for the EKO brand to become synonymous with reliability, quality...

Danilo Đurović, General Manager, Autotechnica Serbia – Hertz

Introducing Flex Drive

As part of the Autohellas Group, which has been the absolute leader of Greece’s automotive sector since 1974, Hertz is more than just a...

Nikos Veropoulos, Owner, Veropoulos

Super Vero, Super Successful

For two decades already, company Veropoulos has been known on our market for its unique offer and high-quality products at promotional prices, but also...

Igor Vijatov, Director of the Serbian Automotive Cluster

No Fleeing Of Automotive Industry Investors

Although the world automotive industry has been hit hard by Covid-19, we have no reason to believe that factories representing parts of large global supply chains will withdraw from Serbia

The entire world automotive industry is based on production chains. Large car factories previously sought to produce as many parts as possible at their own plants, but around 30 years ago they changed the working system and redirected the production of parts to suppliers. They did this in order to save money and increase the efficiency of their plants. Suppliers took on the responsibility for the production of parts, “just in time” deliveries and, in some cases, the development of products, sub-assemblies, as well as individual car assemblies.

In order to make additional savings, reduce car prices and fight for customers, the automotive industry and its supply chains became global. The whole world participates in the production of motor vehicle parts and there is constant competition between countries and factories to provide high-quality parts at the lowest possible prices.

Such a philosophy of production and doing business proved to be good in regular times, but in times of crisis, such as the crisis with Covid-19, problems have emerged in the sense that supply chains have been halted. An additional problem lies in the fact that the pandemic did not hit the whole world at the same time, so in some period production stopped and then continued, but when the crisis ended in some countries or regions it was just beginning in others, which made it even more difficult to establish a normal supply chain for vehicle factories.

The speed at which the car industry in Europe will recover depends greatly on the willingness and ability of citizens across Europe to buy new cars.

What is good is that, by all accounts, the crisis in Europe is coming to an end, car factories are returning to work, and – as they are dependent on their suppliers – they are also relaunching their suppliers’ productions of parts.

Serbia is a country where large factories producing motor vehicle parts arrived in the previous period, which employ a large number of people and have a contribution to GDP that has been growing from year to year. The standstill in the production of cars, primarily in Europe, and thus the standstill in the production of automobile parts in our country, will certainly impact on the Serbian economy. More accurate forecasts regarding the extent of the fall in production and sales of cars and car parts this year are really not easy to predict, and I think that in the future that will depend greatly on the willingness and ability of citizens across Europe to buy new cars.

I really don’t expect that the fleeing of investors from our country will follow. This was also confirmed to us by representatives of BME – Association Supply Chain Management, Procurement and Logistics, Germany – who used their recent online conference, entitled “SEE Automotive Conference 2020” and traditionally organised by the Serbian Automotive Cluster, to present their analysis that major car manufacturers are not expected to move towards changing their suppliers.

Comment

Census Results Cause Concern

The Ministry of Education claims to be exerting ongoing efforts to reform education, but census results indicate the need for more work. The “Platform...

By Iva Draškić Vićanović Ph.D., Dean of the University of Belgrade Faculty of Philology

Restore Teachers’ Dignity

The proposals presented in our Platform are viable over the short term, require no large and lasting reforms and could lead to major visible...

Comment by Prof. dr Slobodan Zečević

The Mirage of the European Oasis

Serbia officially began EU accession negotiations in January 2014. Over the subsequent decade, 22 of the 35 accession negotiation chapters have been opened and...

Plamena Halacheva, Deputy Head of the Delegation of the European Union to Serbia

Easier Access to the Western Balkans’ Single Market

The EU aims to involve Western Balkans partners with its Member States on equal terms, fostering a reform partnership that’s oriented towards the future...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Serbia Advances in Renewable Energy with Pupin Wind Park Financing

In a significant stride towards renewable energy adoption, Serbia has finalized the financial arrangements for the Pupin Wind Park,...

Đedović Handanović: Nuclear Energy in Serbia by 2039 at the Earliest

Nuclear energy in Serbia could become a reality by 2039 at the earliest, should work on the project commence...

Belgrade’s Hotel Jugoslavija Sold, Sparks Redevelopment Controversy

Belgrade's iconic Hotel Jugoslavija, located in Serbia's capital, has been sold for approximately €27 million to MV Investment, affiliated...

Bosnia and Herzegovina Kickstarts EU Membership Talks

Bosnia and Herzegovina has initiated accession negotiations with the European Union, a development hailed as a pivotal advancement for...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Belgrade University Partners with CERN on Future Circular Collider Project

The University of Belgrade has officially become part of CERN's largest scientific endeavor, the Future Circular Collider (FCC) project,...

Kushner Eyes Balkan Luxury Developments in Serbia and Albania

Jared Kushner, closely related to former U.S. President Donald Trump as his son-in-law, is turning his attention to the...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of...

European Parliament Members Endorse Western Balkan Reform and Growth Instrument

Members of the European Parliament's committees on foreign affairs and budget have officially adopted a stance on the Western...

CEB Grants €1.3 Billion Loans to Boost Social Sectors in 11 Countries

The Council of Europe Development Bank (CEB) has sanctioned loans totaling €1.3 billion for 11 member countries, including Serbia...

Belgrade University Partners with CERN on Future Circular Collider Project

The University of Belgrade has officially become part of CERN's largest scientific endeavor, the Future Circular Collider (FCC) project,...

Kushner Eyes Balkan Luxury Developments in Serbia and Albania

Jared Kushner, closely related to former U.S. President Donald Trump as his son-in-law, is turning his attention to the...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of...

European Parliament Members Endorse Western Balkan Reform and Growth Instrument

Members of the European Parliament's committees on foreign affairs and budget have officially adopted a stance on the Western...
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