Fiat and Peugeot Said to Agree on Investment Plan for Van Manufacturing image

Fiat and PSA Peugeot Citroen have signed a deal to share investment for the development the new delivery vans which will be manufactured in Italy, according to anonymous sources.

Fiat and Peugeot will share costs to create a new version of a full-sized van, to be manufactured at the SevelSud plant, Italy, according tot the sources. Fiat is expected to make a public announcement regarding this deal on July 9th.

The two automakers are already partners for the production of the Citroen Jumper, Fiat Ducato and Peugeot Boxer models, all manufactured at SevelSud. In May 2011 Peugeot and Fiat agreed to postpone a similar deal to build mid-sized delivery vans in France. Peugeot aims at investing more than 750 million euro to build a new model by itself to keep the SevelNord plant open.

Earlier this week Fiat-Chrysler announced its plans to build 280,000 small SUVs annually for Fiat and Jeep in Italy. Production of the small SUVs will begin in June 2014, with a Jeep model and then the Fiat 500X. The automaker plans to manufacture 150,000 Jeep vehicles annually and 130,000 Fiat 500X units, with two suppliers involved in this plan.

Source: Bloomberg