Peugeot Announces It Will Build Minicars With Toyota in Europe image

PSA Peugeot Citroen will continue to collaborate with Toyota to develop minicars in Europe, according to PSA CEO.

“Yes, the next generation will once again be jointly developed and produced in the Czech Republic, ” Philippe Varin said in an interview with Auto Motor und Sport.

Analyst started to doubt if such partnerships will continue after the financially troubled French automaker dissolved a components JV with BMW and ended an engine partnership. PSA has started to scale down partnerships with other automakers since it started its partnership with GM.

The next generation Citroen C1 and the Peugeot 107 will be manufactured on the same assembly line as the Toyota Aygo in Kolin, Czech Republic. In March 2012 the Toyota Peugeot Citroen Automobile JV had produced more than 2 million vehicles, since production started in February 2005. Total annual production at the Kolin plant is 300,000 vehicles.

Toyota and Peugeot have been longtime partners and operate a joint venture factory in the Czech Republic. In July, Toyota announced that Peugeot will supply it with commercial vans in an original equipment manufacturing agreement from mid-2013, which will be sold under its own brand in the European market.

Source: Reuters