PSA In Talks with Russia’s ZIL

PSA Peugeot Citroen and Moscow-based truckmaker AMO ZIL confirm they have started discussions about sharing light commercial vehicle production in Russia.

PSA downplays the conversation as "one among many." ZIL notes that the French carmaker is among a group of potential partners in a "large-scale assembly project."

Russia's Vedomosti, which first reported the negotiations, says the talks focus on ZIL assembling Citroen and Peugeot light commercial vehicles under contract at an underutilized factory. The business newspaper adds that the Russian company hopes to sign contracts with several unidentified companies by the end of this month.

ZIL, once a maker of limousines and luxury cars, now builds heavy-duty trucks, construction vehicles and buses.