More news from the advancing front of European carmakers expanding eastwards: PSA, Europe's second largest automaker and the French parent company of Peugeot and Citroën, is considering opening its new plant in Russia to partnerships with rival carmakers.
The new factory is located in Kaluga, some 180 km outside of the capital, Moscow. Russia is considered one of the fastest-growing markets worldwide, alongside India and China, where Western automakers have also been setting up factories, principally through joint ventures with local manufacturers. PSA's Kaluga plant, scheduled to begin production in 2010, will start out building only Peugeots and Citroens, principally mid-size automobiles which PSA says accounts for 60% of the Russian market for new cars.
If PSA did look to partner with another automaker for production at Kaluga, it could go even father east to Japan's Mitsubishi, which recently obtained financial incentives from the Russian government to assemble cars there and with which the French carmaker already partners on its SUVs.
[Source: Automotive News Europe – subscription required]