19 May 2008

PSA Peugeot Citroën and Mitsubishi have signed a deal to set up a joint venture to make cars at the Russian plant that PSA is building 180km south-west of Moscow.

 

PSA announced the plant to build mid-sized cars at Kaluga at Christmas – see this news story – with the intention of building 100,000 cars a year for itself from 2010.

 

Under the new plan, the installed capacity will be 160,000 cars a year for the three marques, Peugeot, Citroën and Mitsubishi, and production will now start in 2011. The foundation stone for the plant is to be laid on 10 June.

 

Mitsubishi and PSA already have one deal in which the Japanese-owned company builds the Peugeot 4007 and the Citroën C-Crosser SUVs. It is just transferring the production of these models from its Japanese plants to the factory in the Netherlands where it also builds its own SUVs for European markets.