PSA seeks suppliers in Russia
Lawrence Speer, Automotive News Europe
Kaluga, Russia -- PSA/Peugeot-Citroen has invited global suppliers to locate factories here as it prepares to open its first Russian plant in 2011.
PSA's Russian project director, Didier Aleton, said: "We plan to respect the legislation and our agreements with Russian authorities on local content. To do that, it's clear we will need a strong local supply base."
PSA must source at least 30 percent of all parts locally within four and a half years of launching production to benefit from deeply reduced tariffs on imported components such as engines and transmissions.
PSA's Kaluga factory is a 70-30 joint venture with Japan's Mitsubishi. The plant will have an annual production of 160,000 mid-sized cars and SUVs.
The models will be sold in Russia under the Peugeot, Citroen and Mitsubishi brands.
The plant will build 110,000 mid-sized cars for Peugeot and Citroen and 50,000 medium SUVs for the three brands starting in 2011.
PSA is building a 50-hectare supplier park next to its car-assembly factory. The automaker hopes to attract local and foreign suppliers.
Watching VW very closely
The factory will be the third car or truck assembly plant in the Kaluga region. It is about 20km from a Volkswagen assembly plant that opened in late-2007 and a similar distance from a Volvo truck plant slated to open in 2009. Kaluga is about 180km southwest of Moscow.
"Being in a region where other companies are establishing operations is extremely favorable," said Roland Vardanega, PSA's head of manufacturing. "We are watching VW very closely to see how they do in attracting suppliers."
PSA will source engines and transmissions for the Kaluga plant from factories in Europe. The company's purchasing department is doing a logistics cost analysis to determine what else should be imported.
"We will look very closely at whether it's more interesting to bring parts here or localize with local suppliers," Vardanega said.
PSA executives said that a number of key suppliers -- including France's Faurecia and Valeo -- will supply the Kaluga factory. They could eventually open plants in the supplier park.
From Automotive News Europe (A Crain publication)
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