PSA Launches Citroen CKD Assembly in Russia

VIENNA – Volume assembly of the Citroen C4 L sedan is under way at the PCMA Rus plant in Kaluga, Russia, where the cars are being put together from complete-knocked-down kits.

The new model goes on sale in June.

The facility, a joint venture owned 70% by PSA Peugeot Citroen and 30% by Mitsubishi, was inaugurated in April 2010. Initially, it assembled Peugeot, Citroen and Mitsubishi vehicles from semi-knocked-down kits.

PCMA launched its first CKD model, the Peugeot 408 sedan, in July. It was followed by the Mitsubishi Outlander cross/utility vehicle in late 2012, with the Citroen C4 L sedan now coming as the plant’s third CKD model.

PSA invested €120 million ($154 million) in the project, including €70 million ($90 million) in tooling the Kaluga plant.

“This is the first Citroen car really integrated in Kaluga,” Frédéric Banzet, CEO of the Citroen brand, tells WardsAuto. “So the launch of the C4 L is a major event which should enable us to have substantial growth in Russia.”

Last year Citroen sold nearly 33,000 vehicles in Russia. Banzet expects the C4 L will boost the brand’s sales this year, even though it isn’t hitting the market until midyear.

“I would say we should beat the 40,000 mark for Citroen cars sold in Russia this year,” Banzet says. “It is a very important model, because (it is positioned) at the core of the market.

“There has been a constant decrease of hatchbacks in the Russian market in the C-segment and an increase of sedans, so we are positioned where we should be.”

Plans call for the monthly production of 2,000 to 2,500 C4 L sedans, Jean-Louis Chamla, general director of Citroen Russia, told local media earlier this year. About 13,000 units are expected to be sold in Russia in 2013.

The C4 L sedan measures 181.9 ins. (462.0 cm) long. The base model is powered by a 115-hp 1.6L gasoline engine and will be priced at RR579,000 ($18,298).

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Kaluga is the second manufacturing site for the C4 L. The car has been produced in China since 2012.

Russian-built C4 Ls may be exported to some Commonwealth of Independent States countries, but there are no plans currently to sell the car in other parts of Europe.

In related news, Banzet confirms earlier reports about negotiations between PSA and Moscow-based Zil.

“It is true, we are having talks in Russia with ZIL for assembly of light-commercial vehicles,” Banzet says. “There is no product confirmed yet.”

Fiat/Chrysler, Renault and some other auto makers also are considering assembly or production of their vehicles at Zil.