PSA Plans to Add Two New Compact Sedans at Russian plant

French car maker PSA Peugeot Citroën plans to launch production in Russia of two budget sedans aimed at emerging countries.
Peugeot’s new sedan will share its underpinnings with the current 308 model and will go into serial production in 2012 at the Kaluga plant, said Bernd Shantts, CEO of Peugeot Citroën Russia, Ukraine and CIS. A similar low-cost sedan is already built and sold in China and Latin America as the Peugeot 408. The company also plans to start production of a budget counterpart under the Citroen brand, possibly based on the C4.
The new models will compete, among others, with the Russian-built Renault Fluence, Skoda Octavia and Ford Focus cars. The introduction of the low-priced sedans is part of PSA Peugeot Citroen’s plan to significantly increase its sales in Russia during the next several years.