×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Peugeot, Mitsubishi and Citroen Suspend Production in Russia

PCMA Rus, a Russian venture owned by France's PSA Peugeot Citroen and Mitsubishi Motors Corporation, will temporarily suspend production of Peugeot, Citroen and Mitsubishi models, it said late last week.

The venture, which has a plant in Kaluga south of Moscow, said it would also cut 100 jobs.

After several years of growth in excess of 10 percent, car sales in Russia dropped in 2014 as the economy weakened, battered by Western sanctions over the Ukraine crisis and sliding oil prices.

The market could plunge by as much as 35 percent this year, according to PricewaterhouseCoopers, and a string of carmakers have cut back local production.

"The continuing deterioration of the market situation forces us to make painful decisions," PCMA Rus said in a statement.

Production of the Citroen C4 Sedan and Peugeot 408 will be halted from April 27 to July 10.

The production line of sport utility vehicles (SUV) will also be stopped from April 2 until May 12.

Two Mitsubishi models, Outlander and Pajero Sport, have been assembled at the SUV production line in Kaluga.

Peugeot holds a 70-percent stake in the venture and Mitsubishi owns the remaining 30 percent. The first models were produced in 2012 and the plant has annual production capacity of 125,000 units.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more