Toyota And PSA To End Joint Production Of Small Cars By 2021

Toyota Motors and PSA have decided to end the joint production of small cars by 2021 which will bring an end to the long going partnership of both the carmakers for producing passenger vehicles. However, according to a Reuters report, both the companies will continue with the joint production of light commercial vehicles. Both the automakers will continue with the production of light commercial vehicles in France. PSA will be assembling commercial vehicles for Toyota at its Sevelnord plant in Northern France while the JVs Virgo based factory will produce new Toyota vehicles.

Toyota will acquire PSA's stake in the joint venture which includes both the parties at present and will integrate the Czech based plant of Kolin into its industrial apparatus. The Kolin based factory which is built on a greenfield site in Czech had added strength to the collaboration between Toyota and Suzuki. This is where PSA (Peugeot-Citroen) and Toyota are assembling the Citroen C1, Peugeot 107 and Toyota Aygo small cars at present.

The report comes almost a year after Toyota had announced a strategic partnership with Suzuki to develop new vehicles together. According to news reports, the vehicles which will be developed and manufactured in India will also be exported to some of the Asian and African markets. The Toyota-Suzuki alliance will also be sharing cross-badged models which will be sold in either of the companies' dealerships in India. While Suzuki will be sharing the Baleno hatchback with Toyota which will be sold through Toyota dealerships, Toyota will be sharing the Corolla mid-size sedan which will be sold through Maruti Suzuki dealerships in India. However, it is not final yet which dealership will Suzuki choose to retail the re-badged Corolla- the premium Nexa dealership or the regular Arena dealership.