Troubled IzhAvto has secured agreement with Kia for the monthly assembly of 500 Kia Spectra and 300 Kia Sorento cars at the plant in Izhevsk, Udmurtia, according to a state minister.
The first car kits will be supplied from South Korea in the first half of October 2009, according to Oleg Rodionov, Udmurtia’s minister of industry, energy and transport.
IzhAvto suspended work in May and initiated bankruptcy proceedings in August 2009. On September 4, the republic’s arbitration court appointed a bankruptcy administration to the plant for six months.
In the summer there was speculation that Kia may move Russian assembly of its vehicles from IzhAvto to Avtotor and Hyundai factories.
Earlier this week it emerged that IzhAvto is in talks with state-owned Rostekhnologii on becoming part of the industrial conglomerate’s Rosavto automobile holding.