PSA will continue building minicars with Toyota, report says

PSA will continue building minicars with Toyota, report says

PSA/Peugeot-Citroen will continue to collaborate with Toyota in the minicar segment in Europe, PSA CEO Philippe Varin told a German car magazine, ending speculation that PSA’s tie-up with General Motors had put the cooperation at risk.

PSA and Toyota build the Citroen C1, Peugeot 107 and Toyota Aygo minicars at a joint venture plant in Kolin, in the Czech Republic. The cars were launched in 2005 and received a mild facelift last year. Their successors are due next year.

Varin told Auto Motor und Sport that the next generations will once again be jointly developed and produced in Kolin.

PSA has been scaling down partnerships with other carmakers since agreeing an alliance with GM February.

Speculation among analysts and in the media about whether this and other partnerships would continue had arisen after PSA dissolved a components joint venture with BMW and ended an engine cooperation deal with BMW.

The Toyota Peugeot Citroen Automobile (TPCA) started production in February 2005. The Kolin plant’s capacity is roughly 300,000 vehicles a year.

In the first seven months, Citroen sold 36,979 C1 cars in Europe, compared with 41,221 the year before, while Peugeot delivered 34,783 107s, down from 45,274, according to data from researcher JATO Dynamics. Toyota sold 36,854 Aygos in the same period, down from 43,350 the year before.