KALUGA, October 20 (RIA Novosti) - The French Peugeot Citroen auto conglomerate and Japan's Mitsubishi will start the industrial assembly of cars in southwest Russia from March 2010, the CEO of the joint venture in Russia said on Tuesday.

Didier Alton told Russian Prime Minister Vladimir Putin during a visit to an exhibition on investment programs in the Kaluga Region that the plant's initial capacity would be 45,00 cars a year.

In 2012, the Kaluga Region facility will roll out 150,000 cars a year and subsequently plans to bring capacity up to 300,000 autos, he said.

Alton said that the alliance of Peugeot Citron and Mitsubishi was continuing its projects in Russia despite the ongoing economic crisis and subsequent difficulties, with total investment in the project expected to hit 470 million euros ($705 million).

Also on Tuesday, Volkswagen's subsidiary in Russia announced the launch of full-cycle production of cars in the city of Kaluga.