As ominous as that sounds, Zastava does have a few things going for it.

ECONOMIST: Serbia's Zastava

Zastava not only provides a livelihood for its employees, but it indirectly supports 200, 000 workers at local suppliers.

ECONOMIST: Serbia's Zastava

Serbia may have buffed up Zastava, but once it is sold, the road for other privatisations will be downhill.

ECONOMIST: Serbia's Zastava

Global car firms are suffering from over-capacity and will thus be reluctant to invest the millions needed to upgrade the plant: Zastava cars do not meet western safety and emission standards.

ECONOMIST: Serbia's Zastava

What is more, Zastava's cars may be getting better.

ECONOMIST: Serbia's Zastava

Ivan Lujanovic, head of corporate restructuring at the Yugoslav privatisation agency, says a successful sale of Zastava will make it easier to privatise the 48 other state companies that urgently need to be restructured.

ECONOMIST: Serbia's Zastava

Still, Zastava won't be an easy sell.

ECONOMIST: Serbia's Zastava