PSA Peugeot Citroen (UG) and Toyota Motor Corp. (7203) signed an agreement for the French carmaker to supply light commercial vehicles to the Japanese auto manufacturer to sell under its own brand in Europe.
Peugeot will provide medium-sized vans derived from its existing Peugeot Expert and Citroen Jumpy models in the second quarter of 2013, the carmakers said today in a statement. The accord, which includes collaboration on future vehicles to be made by Peugeot, may extend beyond 2020, they said.
“The light commercial-vehicle segment is an important one for us in many markets throughout Europe,” Toyota Motor Europe Chief Executive Officer Didier Leroy said in the statement. “We have found a good solution for our loyal customers following the recent discontinuation of our own Hiace model.”
The vans that Peugeot will supply to Toyota may be produced at the French plant of SevelNord, which is currently operated under a joint venture with Fiat SpA (F), Pierre-Olivier Salmon, a spokesman at the Paris-based company, said by phone. Peugeot, Europe’s second-biggest automaker, agreed to buy Fiat’s stake in SevelNord factory by the end of 2012, the carmakers said on July 11.
“We need to fulfill three conditions in order to produce these vehicles: to undo the joint venture with Fiat, to find a new partner, which is now done, and to reach an agreement with SevelNord unions to increase the competitiveness of the factory,” Salmon said. “We are confident.”
Peugeot rose as much as 1.3 percent to 6.65 euros at 9:10 a.m. in Paris. The stock has fallen 37 percent this year.
To contact the reporter on this story: Mathieu Rosemain in Paris at firstname.lastname@example.org
To contact the editor responsible for this story: Chad Thomas at email@example.com