PARIS (AP) -- French carmaker PSA Peugeot Citroen said Monday it has signed an agreement with Mitsubishi Motors Corp., one of Japan's biggest automakers, to create a joint venture in Russia.
The venture will make mid-sized sport utility vehicles under the Citroen, Peugeot and Mitsubishi brands, and mid-sized cars for Peugeot and Citroen at a factory in Kaluga, a city southwest of Moscow.
Production is scheduled to start in 2011 for a capacity of up to 160,000 vehicles, the carmaker said.
PSA Peugeot Citroen, which said last year it has made a priority of expanding in Russia, said mid-sized vehicles account for 50 percent of sales in the market and SUVs are a key part of segment in the ''dynamic'' Russian market.
