Monday, May 19, 2008

PSA Peugeot Citroen and Mitsubishi Motors in agreement for vehicle production in Russia

PSA Peugeot Citroën
Mitsubishi Motors Corporation

Russia: to accelerate their growth, PSA Peugeot Citroën
and Mitsubishi Motors Corporation set up a joint venture

Tokyo, May 19, 2008 — Christian Streiff, Chairman of the Board of PSA Peugeot Citroën and Osamu Masuko, President of Mitsubishi Motors Corporation (MMC), have signed a joint venture agreement to produce vehicles for 3 brands, Peugeot, Citroën and Mitsubishi in Russia.

The assembly plant will be located on the site of Kaluga, 180 km South-West of Moscow. It will produce mid-range SUVs for Mitsubishi, Peugeot and Citroën brands as well as medium size Peugeot and Citroën vehicles, with an overall installed capacity of 160,000 vehicles. The foundation stone of this future plant will be laid on June 10th 2008 in Kaluga. Production is currently planned for 2011 start-up.

The manufacturing diversity of this future joint-venture is the perfect answer to the high growth of the Russian market on these two segments: mid-range vehicles represent 50% of sales in Russia and SUVs correspond to one of the most buoyant segments on this dynamic market.

In 2005, MMC and PSA Peugeot Citroën began working together on an SUV for the European market. Launched in 2007 in Europe, these SUVs are highly successful.

The joint venture agreement marks the deepening of relations between the two carmakers for whom Russia constitutes a priority growth region.

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