FIAT SpA said on Thursday it has signed an agreement with France’s PSA Peugeot Citroen which seals the Italian auto maker’s exit from their shared commercial van plant in northern France.

SevelNord will continue to produce light commercial vehicles for the two groups until Euro6 emissions standards come into effect at the end of 2016.

Sevelnord plant future

PSA Peugeot Citroen last week announced a van production deal with Japan’s Toyota, raising pressure on unions to make concessions on pay and conditions or face a second closure of a French factory (Sevelnord plant).

The company is seeking tax breaks or other support for its northern French Sevelnord plant before committing to build a new vehicle there, Reuters reports citing peoples close to the matter.

The partnership between PSA and Toyota will see PSA produce a Toyota-branded medium-sized van based on its existing Peugeot Expert and Citroen Dispatchvehicles – much like the Fiat Sucdo, which is produced under a similar agreement.


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