SEOUL - Hyundai is unlikely to take over Zastava, the Yugoslav maker of Yugo cars. Hyundai is more likely to set up a new plant in the former Soviet Union, said Chariman Chung Mong-Gyu.
'We have carried out a feasibility study and have held exchange visits with Zastava management,' he said. 'We have had discussions but we have not reached a final conclusion. It is very much unlikely that we will go. We are now studying many options, including Russia and other CIS countries.'
Zastava resumed production after the Bosnian war in 1995, when trade sanctions were lifted. But it urgently needs a technology partner. Yugo cars do not meet emissions or safety standards of Western markets.