Source says Russian plant signs deal with Fiat and Renault image

One of the subsidiaries of the almost 100 years old Russian truck maker ZIL has signed a preliminary agreement to assemble Fiat and Renault vans at a Moscow factory, according to a source close to the deal.

According to the undisclosed source cited by the Reuters news agency, the factory will be set to assemble 50,000 vehicles per year, including 25,000 Renault Master vans and 25,000 Fiat Ducato vans, starting from early 2014.

According to the news agency, the memorandum of understanding was signed last week and a final deal will be signed in October or November. The memorandum includes an obligation to start to invest in the project, although no time frame has been mentioned by the source.

Contacted on the matter, Fiat was not immediately available for comment and ZIL declined to comment while a spokeswoman for Renault said negotiations with ZIL were not finalized and there has been no formal contract signed.

Via Reuters