PSA Peugeot Citroen and Mitsubishi Motors’ joint venture, PCMA Rus, will halt production of Mitsubishi, Citroen and Peugeot models temporarily and cut 100 jobs.
The JV operates a plant in Kaluga south of Moscow.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The decision is been made on account of the weakening Russian economy and falling car sales, Reuters reported.
PCMA Rus said in a statement: “The continuing deterioration of the market situation forces us to make painful decisions.”
According to PricewaterhouseCoopers, the Russian car market could fall up to 35% in 2015.
The JV would stop production of the Peugeot 408 and the Citroen C4 Sedan from 27 April to 10 July while the SUV production line would be halted between 27 April and 12 May. Mitsubishi’s Pajero Sport and Outlander are assembled on that line.
