Daimler Confirms Talks on Car Plant in Russia

Daimler AG confirms it is in discussions with the Russian government to set up a factory to assemble Mercedes-Benz SUVs from kits.

Daimler has declined to reveal such details as the cost of the project, a launch date, which models will be built or an annual production target.

Media reports say the project is worth €200 million ($226 million) and will involve a factory outside Moscow that is large enough to assemble as many as 30,000 vehicles per year. They also claim Daimler could sign a preliminary contract by the end of June.