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PSA-Mitsubishi Factory in Russia to Suspend Most Output
The Russian carmaking venture between PSA Peugeot Citroen and Mitsubishi Motors Corp. says it will suspend most operations in Kaluga for three months beginning in April because of the country's collapsing car market.
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The Russian carmaking venture between PSA Peugeot Citroen and Mitsubishi Motors Corp. says it will suspend most operations in Kaluga for three months beginning in April because of the country's collapsing car market.
Last year PSA sales in Russia plunged 35% to 41,200 units, according to the Moscow-based Assn. of European Businesses. MMC's sales rose 2% to 80,100 vehicles. But demand in January-February 2014 plummeted 80% to 1,700 units for PSA and 45% to 6,500 units for MMC.
The companies launched their PCMA Rus venture in July 2012 with PCA as the 70% owner. The partnership's €550 million factory, which has capacity to make 125,000 vehicles per year, assembles Citroen and Peugeot C-segment cars and the Mitsubishi Outlander SUV.
PCMA Rus says it will eliminate 100 jobs during the production cutback. Analysts predict Russia's car market will shrink at least 25% this year in spite of a 26 billion-ruble (€416 million) government-backed stimulus program.
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