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PSA Peugeot Citroen and Mitsubishi set up a joint venture in Russia
By Yoann Besnard on 20 May 2008 | (0) Comments | Permalink
PSA Peugeot Citroen and Mitsubishi have signed a joint venture agreement to produce vehicles for 3 brands, Peugeot, Citroën and Mitsubishi in Russia.
The assembly plant will be located on the site of Kaluga, 180 km South-West of Moscow. It will produce mid-range SUVs for Mitsubishi, Peugeot and Citroën brands as well as medium size Peugeot and Citroen vehicles, with an overall installed capacity of 160,000 vehicles. The foundation stone of this future plant will be laid on June 10th 2008 in Kaluga. Production is currently planned for 2011 start-up.
The joint venture agreement marks the deepening of relations between the two carmakers for whom Russia constitutes a priority growth region. PSA Peugeot Citroen continues signing partnerships to cut cost and expand its current lineup, which is a smart move. For the two carmakers, the new factory enables them to debut on a growing market without bearing all the costs alone.
In comparison, Renault has bought a stake in a local carmaker, AvtoVaz. Future will say which way is the best. Partnership or alliance?
