Mitsubishi Peugeot to form Russian joint venture

Japan’s Mitsubishi Motors Corp. and France’s PSA Peugeot Citroen will set up a joint venture in Russia to produce cars for the three brands starting in 2011. The factory in Kaluga, 180 km (110 miles) southwest of Moscow, will produce mid-range SUVs for the Mitsubishi, Peugeot and Citroen brands, as well as mid-size Peugeot and Citroen vehicles, with an overall capacity of 160,000 vehicles. The two automakers had separate deals with Moscow granting them financial incentives to assemble cars in the country, and had said they were open to joining hands with undisclosed partners. Peugeot Citroen, Europe’s second-biggest automaker, said in January it was investing 300 million euros (US$464 million) for the Kaluga factory, which it said would have an annual capacity of 150,000 cars from 2010. (May 19, 2008)