Toyota Motor Europe and PSA Peugeot Citroën have expanded their city car joint venture to include light commercial vehicles. Under the plan, the French company is to supply Toyota with medium-sized vans for sale in Europe under the Toyota brand.
Toyota has been without a light commercial vehicle in its range since the start of the year, when it discontinued production of the Hiace, blaming difficulties in making the van's engines Euro-5 compliant.
Starting from the middle of next year, Peugeot Citroën will supply medium-size vans derived from its existing Peugeot Expert and Citroën Jumpy vehicles, in addition to the city car cooperation that has spawned the C1, 107 and Aygo models.
The agreement also includes collaboration on next-generation vehicles that are to be produced by PSA Peugeot Citroën. The collaboration is expected to last beyond 2020.
Toyota Motor Europe will participate in the development and industrial investment costs for the next-generation product, but there are no plans for the two companies to enter into capital tie-ups or joint production.
“The LCV segment is an important one for us in many markets throughout Europe,” said Toyota Motor Europe President and CEO Didier Leroy. “By joining forces with PSA Peugeot Citroën, we have found a good solution for our loyal customers, following the recent discontinuation of our own Hiace model.
"We already enjoy a successful joint-venture partnership with PSA Peugeot Citroën in the small car segment and they are a leader in the European light commercial vehicle market, with a solid reputation for quality and versatility.”
Jean-Christophe Quémard, PSA Peugeot Citroën programmes executive vice president, said: “We are delighted to announce the enlargement of the scope of our successful cooperation with Toyota. This agreement launches the development of a new generation of mid-size Light Commercial Vehicle, offering both companies a competitive product for the European market".