Russia's richest man to give auto industry a charge: report

Russia's reported richest man Mikhail Prokhorov plans to mass produce low-cost electric cars, according to a business daily on Wednesday.

The multi-billionaire planned to open a new car assembly plant in St Petersburg in partnership with local truck manufacturer Yarovit to produce a Golf-class sedan, possibly electric-powered, with a target price of about 8,800 euros (12,500 U.S. dollars), said the Kommersant.

Russian Prime Minister Vladimir Putin met Prokhorov on Tuesday and had voiced support for the project, according to Putin spokesman Dmitry Peskov.

The newspaper said it was the first project of its kind announced in Russia but it faced a number of challenges including profitability, qualified component supply and price competitiveness.

Prokhorov, whose business interests range from gold to a U.S. National Basketball Association club, was willing to invest in innovative projects that were of vital significance for Russia to transform its economy from energy-dependent to innovation-driven.

The Russian tycoon, with an estimated fortune of 9.5 billion U.S. dollars, is the 40th richest man in the world, according to the 2009 Forbes list.

Source: Xinhua