Daewoo Mulls ZiL Plan

MOSCOW -- The South Korean heavy engineering group Daewoo is reportedly considering an up to $2 billion investment in Russia's ailing ZiL auto plant.


Daewoo officials met First Deputy Prime Minister Vladimir Kadannikov on Sunday to discuss joint projects with Russian automakers, Interfax reported. The news agency also quoted Moscow Mayor Yury Luzhkov as saying the Koreans intended to invest $1.5 billion to $2 billion in ZiL.


ZiL managers visited South Korea last month to discuss a licensing program for vehicles, a move apparently designed to refloat the bankrupt automaker and win points in a battle with their major stockholder Mikrodin over who will control the plant.


The Moscow city government, which has a 23 percent stake in ZiL, has been trying to broker a truce between managers and shareholders.