Peugeot Citroen executive Didier Aleton (right) said that the company will make Peugeot 308 and Citroen Ñ4 models in Kaluga Region.
Photo: Valery Melnikov
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French Car Plant Last in Russia So Far
PSA Peugeot Citroen will build a ˆ300-million auto plant in Kaluga Region with a potential capacity of 150,000 vehicles. Under an agreement signed yesterday in Moscow between Peugeot executives and Kaluga Region officials, the plant will start out with production of 75,000 vehicles per year. A third of the plant's capacity may be given to Mitsubishi for assembly of models with a unified frame. Construction will begin this summer on a territory of 200 ha. with a target launch date of 2010. The plant will make Peugeot 308 and Citroen C4 models.
Peugeot sales took a huge downturn in Russia in 2007, sliding to 36,100 pieces. Observers say that the cause of that was an insufficient quota, and it is possible for the company to meet its sales goal of 100,000 cars by 2010.
Mitsubishi sales are better, in 6th place with 100,600 pieces. A source in the Ministry of Economic Development and Trade said that it may produce up to 50,000 cars in the Peugeot plant and, if they two companies fail to reach an agreement, Mitsubishi may build its own plant in Kaluga Region. It would be the last plant built by a foreign carmaker in Russia. Peugeot and Mitsubishi signed a an assembly agreement in December. Volkswagen already has a plant in Kaluga Region, and Volvo is to build a plant there as well.
www.kommersant.com
All the Article in Russian as of Jan. 30, 2008
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