(Tue 29 Jan 08)

PSA Peugeot Citroen has signed a co-operation and investment agreement with the Kaluga Regional Government which will see the company building cars in Russia from 2010 onwards.

A new assembly plant will be built in the city of Kaluga, about 110 miles south of Moscow, and it will mainly produce medium-sized cars, which account for 60% in the Russian market.

The Kaluga facility will have a annual capacity of 150,000 vehicles, or half of what PSA Peugeot Citroen intends eventually to sell in Russia. A more immediate target is 100,000 sales in 2010.

Previous: Mercedes-Benz CLC Coupé                       Next: Across The Sea By Land Rover