Russian PSA-Mitsubishi JV Plant Launches CKD Assembly

VIENNA – PCMA Rus this week launches volume assembly of the Peugeot 408 sedan from complete-knocked-down kits at its plant in Kaluga, Russia.

The Peugeot 408 is the first CKD model to be built at the joint-venture factory owned 70% by French auto maker PSA Peugeot Citroen and 30% by Japan’s Mitsubishi.

Up to now, the facility assembled vehicles from semi-knocked-down kits.

Since its launch in April 2010, PCMA Rus has been assembling five models: the Peugeot 308 and Citroen C4 hatchbacks and Peugeot 4007; and the Citroen C-Crosser and Mitsubishi Outlander cross/utility vehicles. To date, 99,000 vehicles have been built.

Following the Peugeot 408, the plant will launch CKD assembly of the new Mitsubishi Outlander SUV in November. Citroen C4 L sedans from CKD kits will be added in early 2013.

“In order to keep up with the market, it is essential to be here with local production,” PSA Chairman Thierry Peugeot says in a prepared statement.

“The launch of full production capacities at PCMA Rus will allow us to increase significantly the production volume on the Russian market and strengthen the positions of our brands. It reinforces PSA Peugeot Citroen's globalization strategy.”

Says Mitsubishi Chairman Takashi Nishioka: “Our aim in producing vehicles in Russia is to make sure we can provide high-quality Russian-built automobiles that specifically meet the needs of Russian consumers.”

The Peugeot 408 assembly starts with local content of about 35%. The components include stamped parts, bumpers, wheels and tires, seats and dashboards.

PSA expects to reach its full annual capacity of 125,000 vehicles in 2015. The figure comprises 85,000 Peugeot and Citroen C-segment cars and 40,000 Mitsubishi CUVs.