PSA and Mitsubishi To Open Joint Assembly Plant In Russia
By Kevin Miller
PSA Peugeot Citroën and Mitsubishi announced a joint venture to open a vehicle production plant in Russia. The cornerstone of the plant will be placed June 10th, with production scheduled to commence in 2011. The agreement was signed last week by Christian Streiff, Chairman of the Board of PSA Peugeot Citroën and Osamu Masuko, President of Mitsubishi Motors Corporation (MMC).
The Russian assembly plant will be located in Kaluga, 180 km southwest of Moscow. It will produce vehicles for 3 brands, Peugeot, Citroën and Mitsubishi, including mid-range SUVs for Mitsubishi, Peugeot and Citroën brands as well as medium size Peugeot and Citroën vehicles. Capacity will be around 160,000 vehicles.
As Russia is a growing market in a world of slower automotive markets, the announcement of this assembly plant is timely. The product diversity of this future joint-venture is a good combination of the demands of the Rissian market: mid-range vehicles represent 50% of sales in Russia and SUVs correspond to one of the most buoyant segments in the market.
In 2005, MMC and PSA Peugeot Citroën began working together on an SUV for the European market. Launched in 2007 in Europe, these SUVs, the Peugeot 4007, Citroën C-Crosser, and Mitsubishi Outlander SUVs are highly successful. The joint venture agreement marks the deepening of relations between the two carmakers, both of whom consider Russia a priority region for growth.
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