ZiL to manufacture Renault and Fiat cars

MosavtoZiL, a subsidiary of ZiL, signed a preliminary agreement last week to manufacture Renault and Fiat of LCV mark. The final document may be signed at the end of the year, Vedomosti reports.

Their manufacturing may start in Q1 2014. The factory is expected to produce 25,000 Renault cars and the same number of the Fiat ones. The first portion will consist of Fiat Ducato and Renault Master. Full-cycle manufacturing will be launched in 2015.

The deal is worth about $200 million. ZiL is the main investor.

Officials of ZiL, Renault, Fiat-Chrysler, Moscow government and Sberbank abstain from commenting.