The Auto Writer

The global expansion of the automotive industry is translating into some very interesting and diverse partnerships. For the past several years, American, European, and Asian automakers have been partnership with Chinese companies to produce automobiles and now Russia is becoming an important place for new ventures to spring up as well.

Citroën and Mitsubishi (MMC) are the latest companies collaborating to produce models, the former as as subsidiary of French automaker Peugeot. The two companies have announced a partnership to produce three brands of automobiles at a new factory in Kaluga a city some 180km southwest of Moscow. Groundbreaking is scheduled for June 10th, with the first of what will eventually be 160,000 annual vehicles rolling off the assembly line in early 2011.

Two vehicle segments will be produced at the plant:

1. Mid-range vehicles which currently represent 50% of all automotive sales in Russia and,
2. SUVs which is a fast growing and sought after category for Russian drivers.

The most recent Mitsubishi-Citroën arrangement isn’t the first between the companies. In 2005, MMC and PSA Peugeot Citroën began working together on developing an SUV for the European market, a vehicle that has been well received since its 2007 product launch.

Renault and Nissan each own shares in the other while Mitsubishi recently (2005) ended its relationship with the former DaimlerChrysler concern.

(Source: Mitsubishi Motors Corporation)