Publish Date : 24-Jul-2012
French carmaker PSA Peugeot Citroen has reached a deal to provide Japan's Toyota with light commercial vehicles for sale in Europe, the two companies said in a statement on Monday.
The deal comes with Peugeot under fire in France after having announced earlier this month plans to cut 8,000 jobs and to close its historic Aulnay plant near Paris because of falling European sales.
The statement said PSA will provide Toyota with medium-sized vans derived from its existing vehicles and the two companies will then work together on developing a new generation of vehicles.
'Under the plan, Toyota Motor Europe is to participate in the development and industrial investment costs for the next generation product,' the statement said.
'There are no plans for the two companies to enter into capital tie-ups or joint production.' Cooperation is expected to last 'beyond 2020,' it added.
No financial details were disclosed.
The statement also made no mention of where the vehicles would be built but Peugeot was known to be looking for a partner for its Sevelnord plant in northern France after Italy's Fiat pulled out of a joint venture there.
Toyota Motor Europe Chief Executive Officer Didier Leroy said in the statement that the deal was 'a good solution following the recent discontinuation of our own Hiace model.'
Mr Jean-Christophe Quemard, PSA vice-president for programmes, said the agreement will allow both companies to offer 'a competitive product for the European market.' Peugeot chief Philippe Varin was to meet Prime Minister Jean-Marc Ayrault later on Monday for talks on the company's strategy.
Peugeot's decision sparked fierce anger among unions, who denounced it as a 'declaration of war,' and it also came under sustained fire from the government, including President Francois Hollande who said it was 'unacceptable.'
The government is due to present a programme for supporting the auto industry on Wednesday, the same day Peugeot is to present its quarterly results.