Toyota will gain full control over the factory in 2021 which will continue to produce current generation compact cars for both companies.
On Friday, both Toyota and the PSA Group stated, the former has agreed to to purchase the latter’s stake in a jointly-managed Czech Republic factory which specializes in the manufacture of small cars.
In a statement, the duo said, the PSA group will also supply another model of a compact van to Toyota from its Vigo plant in 2019.
From January 2021, Toyota will gain full ownership of the Czech plant and the plant will continue to produce “the current generation” of compact cars for the two companies.
The factory in question churns out Toyota Argo models, Peugeot 108, and the Citroen C1.
“Toyota intends to continue production and employment in the future at the Kolin plant,” said both companies without disclosing financial details.
Incidentally, PSA already assembles vans for Toyota at its Sevelnord plant, in northern France.