Fiat SpA and PSA Peugeot Citroen agreed to share investment in the development of new delivery vans that will be produced in Italy, according to four people familiar with the matter.
The two carmakers will split costs to develop a new version of the Fiat Ducato, Peugeot Boxer and Citroen Jumper full-sized vans, which will be built at the SevelSud plant in central Italy, said the people, who asked not to be identified because the agreement hasn’t been made public. Fiat has scheduled an announcement at the plant for July 9 without providing details. Fiat and Peugeot representatives declined to comment.
Fiat and Peugeot, which currently already cooperate at SevelSud on assembly of the models, agreed in May 2011 to end a similar partnership to make mid-sized delivery vans in France. Paris-based Peugeot plans to invest more than 750 million euros ($962 million) to produce a new model on its own to keep the SevelNord plant open.
The cooperation at the SevelSud joint venture factory in Val Di Sangro, Italy, runs to 2019, according to the companies. Marchionne confirmed last week that Fiat will present “new investments” for the plant as part of its strategy to revamp vehicle production in Italy.
Fiat shares fell 2.1 percent to 5.39 euros in Milan, leaving the company with a market value of 6.73 billion euros.