Mitsubishi’s Russian Production Line Coming to a Halt

6 Apr


Car Production Factory Russia’s economy is about to get a little more unstable. As automakers continue to pull out of the failing market altogether, Mitsubishi and PSA Peugeot Citroen are temporarily stopping production as well. Over the past year, Russia’s economy has been on a steady decline and it doesn’t look like there’s any stopping point in sight.

The joint venture cites the falling market for the shutdown. The Russian market, which could fall as much as 35% in 2015, has been on the decline since the crisis in Ukraine. Western sanctions and sliding oil prices have rendered the economy in turmoil. Prior to 2014, the Russian auto market had seen growth of 10% or more per year.

The temporary shutdown is scheduled to last from April 27th to July 10th for Citroen and Peugeot models and April 27th to May 12th for the sport utility vehicles. The Outlander and Pajero Sport SUVs are assembled at Mitsubishi’s Russian production line. The annual production for the plant is around 125,000 units.

“The continuing deterioration of the market situation forces us to make painful decisions,” PCMA Russia said. Peugeot holds 70% and Mitsubishi holds 30% of the joint venture. In all, 100 jobs will be lost.

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