Peugeot, Fiat turn to Turkey for low-cost vans

31st March 2005, Comments 0 comments

PARIS, March 31 (AFP) - Three European Automakers - French PSA Peugeot Citroën, Fiat of Italy and Turkish Tofas signed an agreement Thursday to develop and produce small, low-cost commercial vans for the European market.

PARIS, March 31 (AFP) - Three European Automakers - French PSA Peugeot Citroën, Fiat of Italy and Turkish Tofas signed an agreement Thursday to develop and produce small, low-cost commercial vans for the European market.

The total investment, including research and development and production start-up costs, is estimated at EUR 350 million (USD 453 million), the companies said in a statement.

The vehicles, which will be available from 2008, are to be built at a Tofas factory in Bursa in northwest Turkey.

Annual production is expected to about 135,000 units of the new model, described as compact, cheap and versatile, with two-thirds for Peugeot and one-third for Fiat including Tofas.

Tofas, owned by Fiat and Turkey's Koc Group, already makes several Fiat models.

© AFP

Subject: French News

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