MOSCOW (Reuters) -- PSA/Peugeot-Citroen and Mitsubishi will halt production at their joint venture plant in Russia for the second time this year and cut 100 jobs.
"The continuing deterioration of the market situation forces us to make painful decisions," PCMA Rus, the companies' Russian joint venture, said today in a statement.
Production of the Citroen C4 sedan and Peugeot 408 will be halted from April 27 to July 10. The production line for SUVs will be stopped from April 27 until May 12.
Two Mitsubishi models, the Outlander and Pajero Sport, are assembled at the plant in Kaluga, south of Moscow.
PSA and Mitsubishi halted production at the plant in February.
After several years of growth of more than 10 percent, car sales in Russia dropped in 2014 as the economy weakened, battered by Western sanctions over the Ukraine crisis and sliding oil prices. The market could plunge by as much as 35 percent this year, according to PricewaterhouseCoopers, and other carmakers have also cut back local production.
PSA holds a 70 percent stake in the joint venture and Mitsubishi owns the remaining 30 percent. The first models were produced in 2012 and the plant has annual production capacity of 125,000 units.
Automotive News Europe contributed to this report
