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.