Peugeot and Mitsubishi in Russian tie-up

Peugeot and Mitsubishi in Russian tie-up

By Peggy Hollinger in Paris and John Reed in London

Published: May 19 2008 19:45 | Last updated: May 19 2008 19:45

Going electric

Carlos Ghosn, Nissan’s president, last week identified leadership in zero-emission vehicles for the carmaker and Renault as a central business objective in its new five-year business plan. The company, which is 44 per cent owned by Renault, plans to launch an electric car in the US and Japan in 2010 and mass-market it globally in 2012. Mr Ghosn has long expressed scepticism about hybrid petrol-electric technology like that used in Toyota’s Prius, which he sees as an interim step before electric cars. With new-generation batteries now available, he is pushing into electric cars in an apparent attempt to capture its bigger rival’s leadership in clean-vehicle technology. Nissan and Renault have signed deals with the governments of Israel and Denmark, which have implemented tax policies favouring zero-emission cars. NEC will supply lithium-ion batteries to Project Better Place, a $200m US start-up investing in recharging points and battery-swap stations for electric cars in those countries, which also plans to expand its business to the UK, China and elsewhere.

PSA Peugeot Citroën is taking Mitsubishi Motors as its partner in its new greenfield plant in Russia, where they will begin producing cars and sport utility vehicles in 2011.

Russia is emerging as a battleground market this year for global carmakers coping with slowing vehicle sales in America and flat markets in much of western Europe.