Official: Fiat exits van joint venture with PSA

Article by Christian Andrei, on July 27, 2012

Fiat said that it had inked a deal with PSA/Peugeot-Citroen that finalizes Fiat’s departure from the commercial van plant that they share in northern France. In a separate matter, PSA was able to reach a deal with unions for a wage freeze and other concessions at the Sevel Nord plant. It was previously revealed that PSA will take full control of the Sevel Nord joint venture in Lieu Saint-Amand by the end of 2012.

Fiat announced that its shareholding in the Sevel Nord JV will be moved to PSA on or before Dec. 31, 2012 at a symbolic value. Until new emissions standards take effect at the end of 2016, the plant will persist in building light commercial vehicles for the two groups.

PSA is hoping to get government aid and wage concession from its workers at Sevel Nord. Insiders said that PSA, which said that it will close one plant and remove 8,000 job earlier this month, is asking for tax breaks or other types of support for Sevel Nord before it could plan to produce a new model in the plant.

Last Monday, Fiat said that it had entered a deal to produce commercial vans for Toyota based on its own models presently built at the plant, which has 2,700 workers.

Toyota will begin van production there next year. The vans will be based on the current Peugeot Expert and Citroen Jumpy models. The Sevel Nord factory, which is situated near the city of Valenciennes, made 94,000 vans in 2011. Of this figure, 20,000 were for Fiat while the rest were Peugeot and Citroen units. This deal will mean that Toyota will buy 5,000 to 10,000 vans each year, according to an earlier report in French weekly La Tribune.

Topics: fiat, psa, partnership

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