Toyota and PSA to end their compact car joint venture

Toyota and PSA to end their compact car joint venture

Toyota and PSA have announced some changes to their strategic association in Europe. The two companies are set to end their nearly two decade-long A-segment compact car manufacturing joint venture, but will expand collaboration in the area of commercial vehicle development and supply.

The business realignment will see Toyota taking over financial ownership of the JV operations in the Czech Republic. The Toyota Peugeot Citroën Automobile Czech (TPCA) plant in Kolin (Czech Republic) will become a subsidiary of Toyota Motor Europe from 2021, joining the seven other plants the company already operates in Europe.

The Japanese automaker said it will continue production of the current generation compact A-segment models for the two companies, and says it intends to continue production and employment in the future at the Kolin plant, which has a workforce of 2,400. It currently manufactures the Toyota Aygo, Peugeot 108 and Citroën C1.

The TPCA joint venture was created by PSA and Toyota in 2002 and included a review clause that allowed each partner to reconsider their shareholding.

The two companies also announced that they would broaden their collaboration in the commercial vehicle sector. From the end of 2019, PSA will begin supplying Toyota with a C-segment van from its Vigo plant in Spain, for sale in Europe. The unnamed vehicle is expected to be based on the new Peugeot Partner and Citroën Berlingo that was announced earlier this year.

This will expand on the current mid-size light-commercial vehicles partnership that began in 2012, with the Toyota ProAce produced at Groupe PSA’s Hordain plant in France. The ProAce, Citroen SpaceTourer and Peugeot Traveller are underpinned by the same platform and technical featuresm but feature individual styling.

The two automakers say the aim of the deepening collaboration will be beneficial from a development and production cost optimisation viewpoint. Toyota added that it will participate in the development and industrial investment costs for the upcoming light-commercial vehicle.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • John Minum Teh 8X on Dec 03, 2018 at 1:19 pm

    Good, Toyota and Peugeot are clever companies. They know when to end things when it does not make business sense or or it is no more a viable business venture.

    Only very stupid companies keep on going on when they are losing millions daily. They must learn to give up their ego and end things like how Toyota has done

    Like or Dislike: Thumb up 7 Thumb down 6
    • nosushi on Dec 03, 2018 at 5:41 pm

      Yeah end JV wit jepunis, got dino tech ended up cannot sell to developed countries

      Like or Dislike: Thumb up 8 Thumb down 2
    • Rightwinger on Dec 03, 2018 at 7:07 pm

      yup like ending F1 when its not making money anymore- gud move.

      Like or Dislike: Thumb up 3 Thumb down 0
  • No worries. Toyota will just go and rebadge another brands compact car, just like what they did with Mazda2.
    Toyota and rebadge berpisah tiada.

    Like or Dislike: Thumb up 17 Thumb down 2
    • John Minum Teh 8X on Dec 03, 2018 at 4:09 pm

      King of rebadging is Proton. From 2018, they will be official rebadger for Geely’s entire fleet.

      Like or Dislike: Thumb up 4 Thumb down 8
      • From 2018, u call king of rebadge? Ur P2 been rebadging since Day1 27 years ago so does it make it the Galactic Emperor of Rebadging?

        Like or Dislike: Thumb up 13 Thumb down 1
        • john bodoh again on Dec 03, 2018 at 5:36 pm

          yes p2 has been rebadging, but proton has been rebadging since they’ve started – Mitsubishi > incase youre ignorant (which is earlier than p2). so they must be Celestial Galactic Emperor of Rebadging?

          Like or Dislike: Thumb up 1 Thumb down 7
          • Rightwinger on Dec 03, 2018 at 7:11 pm

            you conveniently forget that from Waja until inspira got no rebadge.. thats more than a decade…stop smoking what ever your smoking la rodent, its dumbing you down…

            Like or Dislike: Thumb up 4 Thumb down 0
          • topkek on Dec 03, 2018 at 9:49 pm

            Where you put home grown car like preve, persona and newer saga ? That’s not rebadging.

            Like or Dislike: Thumb up 3 Thumb down 0
 

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