Feb 2nd, 2008 by RJ Menezes
PSA Peugeot Citroën, France’s largest automaker, has finalized a new deal in which the company will build a new automotive manufacturing plant in central Russia. The $445 million dollar investment will see to it that the plant can generate up to 150,000 cars annually.
This would be a major boost in jobs in the region. The factory can be very beneficial, with auto plants having the capacity to feed entire towns. The plant will build the Peugeot 308 and Citroën C4.
Construction on the plant will begin this fall with production kicking off in 2010. The company will start with 75,000 vehicles annually and expand afterwards based on demand.
Seems Peugeot is one of many auto companies looking to eastern Europe for business in the near future. The market is coming into it’s own in this region and auto makers like the French giant are there to capitalize on it.