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PSA, Mitsubishi sign joint deal

2008-05-19 14:43

Paris - French auto group PSA Peugeot-Citroen and Mitsubishi Motors of Japan anounced on Monday the creation of a joint company in Russia to produce vehicles under their three brand names.

The assembly factory at Kaluga, 180 kilometres from Moscow would turn out mid-range sport utility vehicles (SUVs) under the three brands and other mid-range vehicles for Peugeot and Citroen.

The factory would have a total production capacity of 160 000 vehicles.

PSA Peugeot Citroen, which said last year it has made a priority of expanding in Russia, said mid-sized vehicles account for 50 percent of sales in the market and SUVs are a key part of segment in the "dynamic" Russian market.

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