The Kaiser-Ilin Industries indicated today it would sue an Austrian motor producer for yielding to the Arab boycott and failing to meet a contract to provide engines for a popular-priced car the Haifa assembly plant is producing for domestic sales.
It was not indicated how large a sum the Kaiser-Ilan firm would seek from Steir-Puch, the Austrian company although it was recalled that the Renault firm of France paid $1, 000, 000 in damages when it yielded to the boycott and ended its agreement with the Haifa firm.
Kaiser-Ilin officials said that despite the action of the Austrian firm, the first redesigned model of the new automobile, made largely from locally made parts, will be ready for display in October. It will have a Japanese-made engine, imported through Eilat. It will also have three seats and a four-cylinder water-cooled engine.
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