Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • Exclusive: Fabius warns of further sanctions against Russia

    Read more

  • Experimental Ebola drug ‘ZMapp’ heals all monkeys in study

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • Chelsea’s Torres set for AC Milan switch

    Read more

  • France shines in IMF list of world’s promising economists

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

  • First case of Ebola confirmed in Senegal

    Read more

  • Obama has 'no strategy yet' on potential Syria strikes

    Read more

  • Netflix to woo French with ‘House of Cards’ set in Marseille

    Read more

  • French businesses ‘hoping for a new Thatcher’

    Read more

  • Syrian refugees surpass 3 million, UN says

    Read more

  • West backs Ukrainian claims of Russian incursion

    Read more

  • Libyan PM resigns as Islamists set up rival administration

    Read more

  • UN says 43 peacekeepers captured in Golan Heights

    Read more

  • The deleted tweets of Manuel Valls

    Read more

  • Peru seizes record 6.5 tonnes of Europe-bound cocaine

    Read more

  • Pakistan army to mediate between PM, protesters

    Read more

  • In pictures: Billions of locusts invade Madagascan capital

    Read more

Peugeot-Citroen to make cars in Russia

Latest update : 2008-01-29

French car maker, PSA Peugeot-Citroen, will build a 300€ million production plant in the outskirts of Moscow that will eventually produce 300.000 cars a year.

French car maker PSA Peugeot Citroen on Tuesday signed a deal with Russian authorities to build a massive car plant southwest of Moscow to serve the "priority" Russian market.
  
Under the deal the French company will invest 300 million euros (443 million dollars) in a factory capable of producing 150,000 cars per year, the company said in a statement.
  
Construction will begin later this year, with the first mid-range Peugeot and Citroen cars rolling off the production line in 2010, the statement said.
  
The French firm's first plant in Russia marks a major push into what the company's director of industrial projects, Didier Aleton, described as one of three "zones of priority development" for the firm, along with China and South America.
  
Peugeot has said it hopes to produce 100,000 vehicles in Russia in 2010, with output eventually growing to 300,000.
  
The rising revenues of many Russians as well as the appearance of car purchase loans have encouraged a spending spree on foreign branded cars as Russians leave behind their Soviet-era models.
  
Sales of foreign brands in Russia went up by 63 percent in the first 11 months of 2007 compared with the same period in 2006, according to data published last month by the Association of European Businesses in Moscow.
  
Fellow French car producer Renault announced a major deal last month to buy into Russian car maker Avtovaz and foreign carmakers have been lining up to set up shop.
  
Peugeot is in talks with Japan's Mitsubishi Motors to join the Kaluga project and produce its cars on the same site, Peugeot's Aleton said, although negotiations could take another "three or four months."
  
It is unclear how this would effect Mitsubishi's plan, announced last month, to invest 200 million dollars (136 million euros) in its own plant in the same region.
  
The Kaluga region, located about 155 kilometres (100 miles) outside Moscow already hosts rival factories run by Volvo and Volkswagen and was selected by Peugeot due to its efficient business climate, Aleton said.
  
Last year Sweden's Volvo signed a 100-million-euro deal to build a truck factory in Kaluga, expected to produce 10,000 Volvo trucks and 5,000 Renault trucks annually.
  
Japan's Toyota opened a new plant in Saint Petersburg last month intended to produce 50,000 models annually within two years.

Date created : 2008-01-29

COMMENT(S)