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. Last Updated: 07/27/2016

Ailing ZiL Sacks President

Shareholders in the troubled truck manufacturer AMO ZiL fired the company's top executive because of the firm's poor performance in 1995, Interfax reported Friday.

The news service said the shareholders council dismissed Alexander Yefanov as president and general director Thursday evening. He is being replaced temporarily by a senior vice president, Viktor Novikov.

Interfax quoted an unidentified management source as saying that Yefanov "often dodged dealing with urgent problems, blocked work to restructure AMO, pursued chaotic staffing practices and misused funds obtained by selling AMO ZiL real estate."

Once the pride of the Soviet automotive industry and the maker of limousines for the Kremlin elite, ZiL has suffered in the post-Communist era from inefficiency, slumping demand and cuts in state support.

The company plunged into crisis in 1994, when a shortage of capital and serious marketing problems forced it to slash production by half.

Under a major restructuring plan, ZiL hoped to return to profitability last year. Interfax said the company planned to produce 47,000 vehicles, but ended up making only about 11,000.