PSA/Peugeot-Citroen is open to team up with other automakers for minicar production

Article by Christian A., on April 29, 2015

PSA/Peugeot-Citroen is willing to enter partnerships with other automakers to spread the cost of designing and building minicars, according to PSA CEO Carlos Tavares. The company has an existing cooperation agreement with Toyota Motor Corp. – a deal that Tavares said is “moving very smoothly, very collaboratively."

He explained that he aims to sustain PSA's cost-sharing effort with Toyota in minicars. He told reporters who attended the Shanghai auto show that if there are other auto companies who want to join in and share costs, he will talk about it with partner Toyota. However, he confirms that PSA is open to being in partnership with other companies to share expenses.

Since 2005, Toyota and PSA have been producing a jointly developed minicar at their joint plant in the Czech Republic. Toyota badges this car as the Aygo, Peugeot calls it the 108, and Citroen sells it as the C1. Toyota said that this plant presently is capable of manufacturing 340,000 cars a year for all three brands.

Tavares said that to build A-segment cars, it's more ideal to have a group of several car companies that will share a given investment and then make derivatives out of the common investment.

He added that currently, conditions in business are so difficult that it makes sense to come together to share investments as well as manufacturing capacity to ensure that business plans are feasible. Tavares ended the talk by saying that PSA/Peugeot-Citroen is “very pragmatic.” Toyota has so far not commented on this matter.

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