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    Severstal Avto to produce Fiat Doblo in Russia

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    MOSCOW, February 8 (RIA Novosti) - Russian car manufacturer Severstal Avto has signed a $17.9-million agreement with Italian company Fiat Auto to produce Doblo vans in Russia, the Russian holding said Wednesday.

    "The production will be launched in 2007 at the facilities of the company ZMA in Naberezhnye Chelny [in the Volga Federal District]," the company said in a press release.

    Sverstal Avto is planning to roll out up to 10,000 Fiat Doblo vans a year by 2008 after reaching projected capacity.

    Severstal Avto has also signed a licensing agreement with Fiat Auto on the manufacturing of the Fiat Palio and Fiat Albea light cars at its ZMA facilities, slated for 2007.

    ZMA, a Russian abbreviation for a mini-car production plant, is a subsidiary of Severstal Avto. The plant produces the Russian Oka car, but will end production of that model in summer this year.

    At the end of 2005, Severstal began producing Korean Ssang Yong off-roaders.

    Severstal Avto owns controlling interests in ZMA, the Ulyanovsk automobile plant and the Zavolzhsky motor plant.

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