Fiat and Renault sign Russian van production deal?

20130810-175930.jpgFiat, Renault sign Russian van production deal, source says.

MOSCOW (Reuters) — Fiat and Renault have signed a preliminary agreement to have vans made in Moscow at a subsidiary of Russian truckmaker ZIL, a source close to ZIL said.

Starting in early 2014 the factory would assemble 50,000 vehicles a year, including 25,000 Renault Master vans and 25,000 Fiat Ducato vans, the source said.

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, the source said, without elaborating on the size of the investment.

A Renault spokeswoman said negotiations with ZIL were not finalized and there has been no formal contract signed. Fiat was not immediately available for comment and ZIL declined to comment.

The agreement was reported on Thursday by Russian business daily Vedomosti.

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Christopher Macgowan
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