Grant Thornton
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2008-06-09

Car manufacturer goes to Russia

The Russian market is growing rapidly and it is by far the most expansive in Europe. Car manufacturers are entering in a steady stream and Mitsubishi is the latest addition.

Last November, Volkswagen and Skoda inaugurated their joint factory in Kaluga, 180 km southeast of Moscow. Their production target is 150 000 cars per year until 2009. Close on their heels is the PSA group, Peugeot and Citroën, with a factory in the same area. Medium term, PSA is planning for a production of 300 000 cars per year in this factory, but initially the production will be about 100 000 cars. Consequently it is Mitsubishi’s turn to enter the hot Russian market.


Before the last day of 2007, the Japanese car manufacturer signed a deal with Russian authorities regarding a green field operation in the country and last spring Osamu Masuko, chairman of Mitsubishi Motors Corporation (MMC), signed an agreement with Christian Streiff, chairman of PSA Peugeot and Citroën, to form a partnership.

– Mitsubishi Outlander will be produced in the Russian factory, says Lotta Thulin, PR and Information at Mitsubishi Motors Sweden.

As for the other car manufacturers, this factory will be established in Kaluga and construction will start on June 10.

– Production is estimated to around 160 000 cars per year and will start sometime in 2011.

Emelie Ring, Editor

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