Official Statement from Zastava TERVO Management

The management of Zastava TERVO d.o.o. Kragujevac, although it had no intention of responding to media appearances, feels a duty to stand in defense of the Company. Accordingly, we hereby completely refute the inaccurate information presented to the public by representatives of union organizations about the current, as stated, dramatic situation in our factory.

Yesterday's media appearance, the second time in the last two weeks, warns of alleged problems, specifically deadlines in vehicle delivery, as well as the current ban on permanent employment for employees who have met the conditions for this status. In their statement, delays in vehicle delivery are linked to wage payments, which is why union representatives call for urgent measures to resolve the crisis.

We will additionally note that the increasingly frequent appearance of union organizations in the media tends to attract as much attention as possible, without a clearly defined goal, aside from mere media exposure. In the letters cited, the unions themselves point out that the management cooperates well with competent authorities. In support of this, the information that responses were negative is NOT TRUE.

We believe that the cause of this destructive performance without substance is the union meeting with management, held the day before the union's public appearance, which did not go according to their plan. The meeting was held at the union's request, at which, instead of discussing the agenda items they themselves proposed, they leveled a series of insults against individual managers.

In a situation where they are not called upon to staff and manage the Company, unions find it appropriate to damage the factory by manufacturing enemies and non-existent problems. The only deadlines unions are interested in are deadlines in which they will have the opportunity to present themselves to members as victors against management.

We can report that the current production process, which is very complex, is proceeding in accordance with the planned annual plans, and that the financial situation is completely stable. Over the past years, not only wages but all other obligations due have been regularly paid each month. Wage payments have never been called into question at any point.

The business year 2025 in our company concluded with positive results, despite numerous obstacles and aggravating circumstances in business. In addition to regular wages, employees have been adequately rewarded through positive incentives in accordance with capacity and achieved results.

A fact we are particularly proud of as a collective is the readiness of our employees to learn and acquire new knowledge, reflected through the entire platform of digitalization and automation of the production process. Regarding the dedication of the collective, led by management, towards further minimizing employee turnover, the fact that during previous years practically no employees were dismissed by management speaks volumes, with tolerance at the highest level and an exclusive emphasis on learning from mistakes.

In September 2026, 9 years will have passed since the founding of the company, whose primary goal was the production of terrain vehicles. During its business operations, growth, and development, Zastava TERVO has been recognized within the system as one of the pillars of development and production of complex combat systems, as a system integrator, and fundamentally as a terrain vehicle manufacturer.

We proudly emphasize, as demonstrated through the relationship with employees — first and foremost reflected in the signed Collective Agreement (signed in March 2026) — that every employee is important and a key element in achieving our common business goals, which are directly aimed at fulfilling National Security tasks in the broader sense through supplying the Serbian Armed Forces and other security units with our vehicles and military equipment.

Media reports and writings based on union organization letters and statements cannot be accurate, and the letters and statements are largely the result of nervousness among certain individuals who expected space for less work and greater influence through their media and other pressure methods. The consequences are not only the loss of union credibility in future negotiations but also a shaken image of Zastava TERVO as a reliable partner both domestically and internationally, which we have built over years.

We continue to work with the hope that in the coming period we will focus more on our current and new business and less on responding to unfounded attacks of this type. Any public statements, especially inaccurate and unverified ones, bring harmful consequences and have a degrading impact on further growth and development, and thus on the Zastava TERVO collective.

Finally, we must emphasize that Zastava TERVO was created from the ashes of a fallen giant through the day-and-night work of its employees, the vision of the Ministry of Defense, and the support of the state. It is hard to resist the impression that this attack on the Company, in addition to unions, has other sources. Not for the first time, at a time when the state is making efforts to allocate funds for equipping the Serbian Armed Forces with domestically produced assets, domestic manufacturers are being undermined from within through unfounded attacks, creating dust, generating animosity between management and employees, and portraying Zastava TERVO as an unstable company.

We call upon the public, if there is available media space, to dedicate it to the numerous activities of a developmental-productive nature in order to promote not just the company and the assets that are part of the production program, but to highlight successful and young people who, through their work, learning, and personal development, have contributed to the progress of both the company and the community in the broader sense. We wish to be recognized by the wider public for results, achievements, and accomplishments (which are numerous), and not for inaccurate and unverified information circulated by union organizations or individuals.