Kragujevac Crvena Zastava Plant

the largest automotive plant in Yugoslavia; located in Kragujevac, in the Socialist Republic of Serbia. The plant grew from a small foundry where, in October 1853, the first cannon in Serbia was cast. After World War II (1939–45) and the creation of the socialist state of Yugoslavia the plant produced weapons, trailers, plows, and other metal articles (until 1953). On the 100th anniversary of the plant, in 1953, a decision was made to replace production of weapons with production of motor vehicles.

Since 1954 the plant has been making automobiles under license from the Italian firm Fiat. In 1955, 1,044 vehicles were produced. With the addition of a new assembly line in 1962, the production capacity of the plant was increased to 32,000 vehicles per year. The new assembly line was designed to permit a significant increase in output, if necessary. In 1968, 54,000 vehicles were produced; in 1971, more than 100,000. In 1971, 27,000 workers were employed at the plant.

The Kragujevac Crvena Zastava Plant is the chief enterprise of a combine made up of nine other enterprises that supply assemblies and parts. The physical output plan of the combine includes automobiles, light trucks, and specialized vehicles. In 1972 it began to produce a domestically originated vehicle, the Zastava 101, designed by the engineering bureau of the plant with help from Fiat specialists.