- PSA Peugeot Citroen will start test assembly of five models in its Russian factory.
- By year's end, the plant expects to produce 25,000 cars.
- Total annual capacity should reach 100,00 units.
KALUGA, Russia — PSA Peugeot Citroen will start test assembly of five models in its factory here this month, with a full-scale launch scheduled for mid-April, Russian media are reporting. Among the models scheduled for production are the Peugeot 308, Peugeot 4007, Citroen C4 and Citroen C-Crosser, as well as the Mitsubishi Outlander XL.
By the end of 2010, the Kaluga plant is expected to produce about 25,000 cars, while its total projected capacity will amount to 100,000 cars per year. In addition, in 2012-'13 Citroen plans to launch a new model, based on the C4 platform, that has been specially designed for the Russia market.
Inside Line had reported in December that the plans were in the works.
The total amount of funds invested by PSA and Mitsubishi Motors in the construction of the Kaluga plant is the equivalent of $641 million. The share of investments of PSA Peugeot Citroen will amount to 70 percent, or about $450 million, and Mitsubishi's 30 percent, or about $191 million. Mitsubishi Motors is expected to join the project later this year, probably in September.
The French auto alliance reportedly decided to accelerate production at the plant because of the recession. PSA's initial plan had called for a 2011 completion date.
Peugeot Russia Director Francois Poirier called Russia "a priority market for the company." He went on: We have very big ambitions here. In 2010, we should increase our sales and extend our presence."
Inside Line says: The Peugeots and Citroens will be rolling off the line soon. — Evgeniy Vorotnikov, Correspondent
Add A Comment »