Both Volkswagen and PSA Peugeot Citroen will soon start selling cars built at their new plants in the Kaluga region of Russia, the companies told an investment forum in the city.

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Kaluga is some 190km (110 miles) south-west of Moscow.


VW will start selling Kaluga-built Golfs next month for about 6% less than imported models. Locally-built cars will cost 592,100 to 661,300 rubles (US$18,400-$20,500). The Passat CC and other models will be added to the Russian production lines later this year.


VW built more than 60,000 vehicles in Russia last year.


Alan Bodri, manager of PSA’s project in Kaluga, told the forum the plant was on track and would add  Peugeot 308s and Citroen C4s to the line from next March.

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The first models built at Kaluga will be the Peugeot 4007 and Citroen C-Crosser compact SUV models which are variants of Mitsubishi’s Outlander.


Annual production has been cut from the initially planned 150,000 to 125,000.