Fiat and PSA to continue cooperation despite PSA-GM deals

Article by Anita Panait, on December 24, 2012

Italian carmaker Fiat and French auto group PSA/Peugeot Citroen will carry on their collaboration on light commercial vehicles, despite PSA's partnership with American automaker company General Motors Co. Fiat and PSA produces the Citroen Jumper, Fiat Ducato and Peugeot Boxer large vans in a joint venture factory in Val di Sangro, Italy, the birthplace of Fiat chief executive Sergio Marchionne.

According to Fiat, the Val di Sangro plant is largest producer of vans in Europe, with an annual capacity of 250,000. The joint venture defines no fixed timespan and there are no plans to change it, a PSA spokesperson told Automotive News Europe. Fiat remarked that its cooperation with PSA is working well and will continue to do so in the future. PSA also buys the two smallest vans in its range -- the Citroen Nemo and Peugeot Bipper -- from TOFAS, a Turkish subsidiary of Fiat. The vans are built alongside sister model Fiat Fiorino.

The contract will expire in mid-2015 and both carmakers refused to speculate on future possible developments.

According to Max Warburton, a Bernstein Research analyst, light commercial vehicles are considered crucial to European carmakers' fiscal health since they account for around EUR300 million to EUR400 million in annual operating profit a year for auto companies like Fiat, Renault and PSA. Warburton remarked that the LCV segment is the most overlooked profit driver of the European auto industry, with margins far above that of all but the highest end premium cars.

GM and PSA signed December 20, 2012, the formal agreements for a purchasing joint venture and three passenger car joint projects – following a February 29, 2012 memorandum of understanding for a strategic alliance between them to cut costs in Europe.

Topics: fiat, psa, partnership

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries