Fiat-PSA Partnership for Producing Vans Will Continue image

The alliance between Fiat and PSA Peugeot Citroen for light commercial vehicles will go on despite PSA’s partnership with GM.

Fiat and PSA created a joint venture to manufacture the Citroen Jumper, Fiat Ducato and Peugeot Boxer large vans at the Val di Sangro plant, near Chieti in southern Italy. According to Fiat this facility is the largest producer of vans in Europe, with a capacity of 250,000 vehicles annually.

A PSA spokesperson said that the partnership has no fixed timespan, while Fiat announced that “The cooperation is working well and will continue to do so in the future.” PSA Peugeot Citroen also buys the Citroen Nemo and Peugeot Bipper, which are the smallest vans in its range, from Fiat’s subsidiary in Turkey, TOFAS.

The deal between the two automakers will end mid-2015, but the companies didn’t offer any details on future possible developments. Light commercial vehicles are of utmost importance for the European market as they bring between 300 and 400 million euro in annual operating profit annually for automakers such as Renault, Fiat and PSA, according to analyst Max Warburton.

“The LCV segment is the most overlooked profit driver of the European auto industry, with margins far above that of all but the highest end premium cars,” Warburton said.