PSA and Toyota Close to Deal on Sevelnord Facility image

Toyota and PSA/Peugeot-Citroen’s threatened Sevelnord plant may close a deal for the purchase of light commercial vans.

Toyota plans to buy light commercial vans from PSA/Peugeot-Citroen’s threatened Sevelnord facility. According to the agreement the company would buy between 5,000-10,000 light commercial vans annually beginning 2013.

Last week PSA/Peugeot-Citroen announced it plans to cut 8,000 jobs and close another French facility, but added it hopes that Sevelnord, a joint venture with Fiat, would survive the Italian automaker’s planned withdrawal. Fiat already expressed its intention to exit the partnership.

PSA also manufacturers the Peugeot 807 and Citroen C8 large minivans at the Sevelnord plant. Manufacturing chief Denis Martin said that the future of this facility depends on whether the auto maker will manage to find a new partner and get concessions from unions.

At the beginning of this month Fiat and PSA had presented the Sevelnord plant employees the terms of Fiat’s exit. Although Peugeot will most likely take full control over the plant in December 2012, according to the exit terms it will continue to manufacture light commercial vehicles for both companies until 2016 when the new emissions standards will arrive.