Serbia’s only passenger car plant, the Zastava facility in Kragujevac (140km south of Belgrade), has begun production of two models that use PSA Peugeot Citroen engines. Under the contract signed in April, Zastava will initially use two Euro III-compliant 1.1 litre 60bhp (44 kW) and 1.6 litre 98bhp (72kW) that currently power some of PSA Peugeot Citroen’s older-design …
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