PSA Peugeot Citroën have agreed to supply light commercial vehicles for Toyota in Europe in a deal which will start from the middle of next year.

Toyota has a limited commercial model range at the moment with its Hilux pick-up, Hiace which is now on run out and a specialist market flatbed Dyna so this new deal will expand the Japanese brand’s presence in this market segment.

PSA Peugeot Citroën will supply medium size vans derived from its existing vehicles Peugeot Expert and Citroën Jumpy.

Toyota told AM the vans will be sold through its existing dealer network and it will not be establishing a new network of specialist LCV businesses.

The agreement also includes collaboration on next generation vehicles which are to be produced by PSA Peugeot Citroën. The collaboration is expected to last beyond 2020.

Toyota Motor Europe will participate in the development and industrial investment costs for the next generation product. There are no plans for the two companies to enter into capital tie-ups or joint production.

Didier Leroy, Toyota Motor Europe president and CEO, said: “The light commercial vehicle segment is an important one for us in many markets throughout Europe.

“By joining forces with PSA Peugeot Citroën, we have found a good solution for our loyal customers following the recent discontinuation of our own Hiace model.

“We already enjoy a successful joint-venture partnership with PSA Peugeot Citroën in the small car segment and they are a leader in the European light commercial vehicle market, with a solid reputation for quality and versatility.”

PSA to cut 8,000 jobs in France

The LCV co-op deal follows on from Peugeot's announcement it will have to cut 8,000 jobs and close an assembly plant near Paris in order to cut operating losses in its manufacturing division.