PSA/Peugeot-Citroen not planning to renew joint venture with Fiat after 2017
By Andrew, 12 May, 2011. 0 Comments
PSA/Peugeot-Citroen Logo
PSA/Peugeot-Citroen SA won’t renew a northern France joint venture with Fiat S.p.A. after 2017. Instead, it pledged to make an investment of 355 million euros ($511 million) in over three years at other plants in the Nord Pas de Calais region. In a statement last Thursday, PSA said that the joint production of PSA Peugeot Citroen and Fiat will continue at the Sevelnord plant until 2017. It stated that the two partners chose not to renew the joint-venture deal “due to diverging product strategies."
Their factory, which is located near Valenciennes, builds commercial vehicles such as the Peugeot Expert, Citroen Jumpy and Fiat Scudo. PSA said that as part of their light commercial vehicle cooperation, the two companies will assemble the Peugeot Boxer, Citroen Jumper and Fiat Ducato until 2019 in Val di Sangro, Italy.
In addition, PSA will invest 220 million euros from now until 2014 in its Valenciennes plant to produce a new dual clutch transmission. It is also set to launch a 135 million-euro investment program at the Francaise de Mecanique plant in Douvrin.
Gallery: PSA/Peugeot-Citroen Logo
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