Automotive industry in Serbia Serbia's automotive industry is one of the most important industrial sectors and makes about 15% of industrial output of the country and 18% of all exports (expected to reach $2 billion in 2013). History The Serbian automotive industry has its roots at very beginning of 20th century, when, in 1904, the industrial military complex Zastava creates a section dedicated to automobile repair and manufacture of certain parts. Yugoslav era In 1939, Zastava began assembling Chevrolet trucks. Production came to end with the start of the Second World War. Until 1941, the factory in Kragujevac produced 400 Chevrolet military trucks and the automotive section of the Zastava industrial complex employed 12,000 workers. In 1953, at the centenary of the company, Zastava signed a contract with Italian manufacturer FIAT to start the production several models under licence, including trucks, passenger cars, tractors and heavy-duty vehicles. In 1955 starts the production of what became the most popular model, the Zastava 750, which counted a total of 923,487 units produced. In 1965 Zastava starts exporting abroad. United States imported over 140,000 Zastava vehicles, sold as Yugos. In 1989 Zastava produced a record 230,570 units. All in all, Zastava produced over 4 million vehicles between 1953 and 2001, and exported to 74 countries, making Kragujevac the center of the automotive industry of Serbia and the entire Yugoslav federation. However, the facilities of the Zastava industrial complex were heavily damaged during the NATO bombing of FR Yugoslavia in 1999. Zastava's suppliers manufactured under strict, high-quality production standards that enabled them to work with other western car manufacturers such as Mercedes, Ford, Peugeot Citroën-PSA Renault, and Opel. This was also necessary to meet Yugoslav obstacles to importing fully-built-up cars. Zastava also assembled Fiats and various Fiats built in the Eastern Bloc for sale locally. Second-biggest manufacturer IMV manufactured Renaults (replacing original Western partners Austin, NSU and BMW) in Novo Mesto, Slovenia, Tvornica Automobila Sarajevo (TAS) built Volkswagens in Sarajevo in Bosnia-Herzegovina, Cimos built Citroëns in Koper, Slovenia, and fifth-placed IDA assembled Opels. Local assemblers had to form joint ventures with Western operators to sell their wares in Yugoslavia, usually exporting locally made parts in return for CKD kits. There was also a brief attempt by a company called Invest-Metali to assemble Peugeots in Pristina, Kosovo, starting with 750 cars delivered in 1985. This company seized trading in 1991 and it is unknown whether any more cars were assembled by them. Although 211,522 cars were officially built in Yugoslavia in 1983, many were partially knocked down imports and some were misclassified imports. Full imports were officially only available to those who were able to pay entirely in hard currency, which limited such sales to a trickle. In 1984, fully built-up imports from the West (excluding locally assembled cars) represented less than 4 percent of the market. Although Japanese manufacturers Toyota and then Mitsubishi both entered the market on a limited scale in the first half of the 1980s, nearly all Western imports were of European brands. The number one selling import was the Fiat Uno, of which over 300 were sold in 1984. Post-Yugoslav era Today, the automotive industry is one of the most prominent sectors in Serbia, accounting for almost 10% of the entire FDI stock in Serbia since 2000. 27 international investors have invested almost €1.5 billion in the sector, creating more than 19,000 jobs. The Serbian automotive industry supplies almost all major European and some Asian car manufacturers. The manufacturing of vehicle chassis system parts, especially tires and suspension parts is the most prominent activity in the industry. Electrical system components