PSA to make vans for Toyota in Europe
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PARIS (Bloomberg) -- PSA/Peugeot-Citroen and Toyota Motor signed an agreement for the French carmaker to supply light commercial vans to the Japanese auto manufacturer to sell under its own brand in Europe.
Peugeot will provide medium-sized vans derived from its existing Peugeot Expert and Citroen Jumpy models in the second quarter of 2013, the carmakers said today in a statement. The deal, which includes collaboration on future vehicles to be made by Peugeot, may extend beyond 2020, they said.
"The light commercial vehicle segment is an important one for us in many markets throughout Europe," Toyota Europe CEO Didier Leroy said in the statement. "We have found a good solution for our loyal customers following the recent discontinuation of our own Hiace model."
The vans that PSA will supply to Toyota may be produced in Lieu Saint-Amand, France, at the Sevel Nord factory, which is currently operated under a joint venture with Fiat Group, Pierre-Olivier Salmon, a spokesman at the Paris-based company, said by phone.
PSA, Europe's second-biggest automaker, agreed to buy Fiat's stake in Sevel Nord by the end of 2012, the carmakers said on July 11.
"We need to fulfill three conditions in order to produce these vehicles: to undo the joint venture with Fiat, to find a new partner, which is now done, and to reach an agreement with Sevel Nord unions to increase the competitiveness of the factory," Salmon said. "We are confident."
Peugeot rose as much as 1.3 percent to 6.65 euros at 9:10 a.m. in Paris. The stock has fallen 37 percent this year.
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