Mitsubishi Launches Outlander CKD Assembly in Russia

VIENNA – Volume assembly of the new-generation Mitsubishi Outlander cross/utility vehicle is under way at the PCMA Rus joint venture plant in Kaluga, Russia.

The Russian-made Outlander is being produced from complete-knocked-down kits sourced from Japan.

PCMA, owned 70% by PSA Peugeot Citroenand 30% by Mitsubishi, opened in April 2010 with production of Peugeot and Citroenvehicles and the previous-generation Mitsubishi Outlander from semi-knocked-down kits.

In July 2012, PCMA launched the Peugeot 408 sedan as its first CKD model. Following the new Outlander ramp-up, CKD assembly of the CitroenC4 L sedan will be added in first-quarter 2013.

Mitsubishi unveiled the next-generation Outlander at this year’s Geneva auto show.

Russia is among Mitsubishi’s largest markets worldwide, and the Outlander is an important vehicle for the brand there. It was released first to the Russian market in July as a built-up import from Japan, ahead of even its Japan debut in October.

In July 2013, Mitsubishi plans to add CKD assembly of the Pajero Sport SUV as its second Russian-made model.

"After that, we’ll see which changes will come about in the market and we will start thinking about the next model," Mitsubishi President Osamu Masuko tells Russian car magazine Klaxon in a recent interview. "Possibly it might be a sedan."

A few years ago, the Lancer sedan accounted for up to 65% of Mitsubishi’s deliveries in Russia, but current sales are significantly lower.

In the interview with Klaxon, Masuko says the Lancer's downfall isn't the result of management missteps.

“There were no mistakes,” Masuko is quoted as saying. "It’s all about the crazy yen rate. The car has lost its competitiveness."

Mitsubishi sold 59,872 vehicles in Russia this year through October, up 1.8 % from like-2011.