For months now, the Kragujevac plant in Serbia, where the new Fiat Grande Pandahas made headlines for its difficulties in achieving a production rate worthy of the model's commercial success. After sending Italian workers as reinforcementsthen their forced return due to administrative errorsa new stage is about to begin: the imminent arrival of hundreds of foreign workers from... Nepal and Morocco.
800 foreign workers expected in Kragujevac
According to AutoKlub, relaying a statement by a local Kragujevac councillor, around 800 workers from Nepal and Morocco are expected to be hired at the Stellantis plant in the near future. A striking figure, given that the town has almost 9,000 unemployed.
For the unions, the reason is clear: the salaries proposed by Fiat are not enough to attract locals. Jugoslav Ristić, former union leader and president of the Nova svetlost association, puts it bluntly:
"People don't want to work for this wage because they can't survive on it. That's why we call on workers from poorer countries, like Nepal or Morocco."
Low wages keep Serbs away
Today, a worker in Kragujevac earns around 70,000 dinars a month, or €597, slightly above the local minimum wage, but well below the Serbian average of €920. By working every Saturday, a worker can hope to climb to 90,000 dinars (€768), but at the cost of working well over 40 hours a week.
By way of comparison, the Italian workers sent to reinforce the company were paid almost €100 a day, i.e. almost five times as much.
The contrast is such that many local workers prefer to leave the Fiat plant after only a few days. As Goran Milić, president of the regional metalworkers' union, sums up:
"The workers hired last a few days and then leave, probably because of the low wages."
Why Nepal?
The choice of Nepal is not insignificant. In this country of 27 million inhabitants, over half the population lives on less than 1.25 $ a day. For these workers, a salary of €500 to €600 in Serbia already represents a major opportunity. Stellantis reportedly plans to offer them, in addition to a salary, two meals a day and accommodation valued at €100 a month.
Initially, foreign workers were to be taxed at an advantageous rate (only 10 % in taxes), but this measure was rejected by the Serbian government, which would have slowed down the first recruitments.
The Fiat Grande Panda, a promise still under threat
The paradox is cruel. The Fiat Grande Panda is supposed to be Fiat's popular new car in Europe: neo-retro design, attractive price, accessible electrification. Since February, more than 15,000 orders have been received and deliveries begin to accelerate. But the industrial reality remains fragile.
Official target: 500 vehicles per day. Current reality: only 150 to 180 units, despite the opening of new production stations. Lead times are skyrocketing: several months' waiting for hybrid versions, even though Stellantis is banking on them to attract a broad customer base.
A battered image for Fiat and Stellantis
By relying on low-cost foreign labor, Stellantis is exposing itself to increasing criticism. How can the company justify recruiting workers 6,000 kilometers away, when thousands of unemployed people live close to the plant? For the unions, the answer is simple: Fiat refuses to pay decent wages.
"If Fiat paid €1,000 a month, it would find workers without a problem," says Ristić.
Behind the Fiat Grande Panda, an entire industrial policy is at stake: that of a Europe that wants affordable cars... but turns a blind eye to production conditions.
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Wow, Stellantis doing their best to mess this up! How can Renault produce in France (not a cheap labor economy) & sell the R5 at a profit, and yet Fiat can't pay decent wages to their staff in Kragujevac and make a profit. For comparison Italian price : R5 €25k, GP BEV €24k
It's a shame that Stellantis doesn't pay Serbian workers decent wages.
This group is making more mistakes by the day, and Fiat's image is taking a hit in this story. I have the impression that Stellantis is becoming ingerable.
If this article is true, it's all over for Fiat Europe. They're making mistake after mistake, the clientele has long since gone, there was a small chance of regaining a few sales, but the botched launch of this strategic vehicle gives us no hope. And the 500 diesel without an automatic gearbox, that's a foregone conclusion. Sad.
Another "excellent" idea, hiring anyone to build anything in a country in near insurrection, well done Fiat.