PSA Peugeot Citroën and Toyota announce the name of new joint-venture company

On the occasion of the press conference of January 9 held under the auspices of the Czech government, PSA Peugeot Citroën and Toyota announced the name of their new joint-venture company, and the names of its President and Vice President. The following is the text of the material that was handed out at the conference.

On 12th July, 2001, Toyota President Fujio Cho and PSA Peugeot Citroën CEO Jean-Martin Folz signed in Brussels a joint memorandum and agreement on the development and production of small cars positioned below current entry-level models. However, achieving such a project implied the selection of a new industrial site that would meet a number of stringent conditions necessary for the building of the joint-venture plant.

Primarily thought out for an expanded European market which keeps undergoing major changes, the vehicles will be sold under the Toyota, Peugeot and Citroën brands at prices below those of the smallest cars currently produced by the two companies. The two groups strongly believe, there will be an increasing demand for compact vehicles, and both of them forecast that it will keep growing in the future.

The cars to be built on the new platform, will be jointly developed by the two companies. They will be a modern, four-seat model boasting the most sophisticated technologies in terms of safety, reliability, environmental protection and urban mobility. Equipped with the latest generation of 1.0-liter gasoline engines and 1.4-liter diesel engines, they will be especially fuel-efficient. The project will offer clearly differentiated models and specific styles for the vehicles of the two groups while guaranteeing strong commonality for the car structure and components. In launching this new vehicle concept, Toyota and PSA Peugeot Citroën will introduce a brand new offer of small-size cars which will complement their product lines. Total investment for this 50/50 joint venture, including research, development and business start-up costs, is estimated at approximately 1.5 billion euro.

As already announced in Brussels by Fujio Cho and Jean-Martin Folz, various industrial sites have been visited and pre-selected throughout Europe in the second half of 2001. Out of a shortlist made up of three countries, the location of Kolin, Czech Republic, 60 kilometres east of Prague, was finally selected to host the joint-venture plant scheduled to begin operation in 2005. Senior officials of the two groups announced their selection to the Czech authorities on 20th December, 2001. Construction is expected to start sometime around September.

The site of Kolin, Czech Republic, turned out to meet all the selection criteria set by the two groups: with an annual production capacity of 300,000 units operating in three shifts, the plant of Toyota and PSA Peugeot Citroën will be built on an area of 120 hectares. The selected component manufacturers are likely to implement just-in-time facilities close to the joint-venture plant, playing a role in this major industrial project.

Ideally situated in the heart of Central Europe, Kolin is close to the major industrial markets and business centres thanks to the efficient national transport network and the many infrastructures. The joint-venture plant is expected to generate some 3,000 jobs at large. Given the excellent reputation of the Czech educational system, PSA Peugeot Citroën and Toyota will have no difficulty in recruiting local staff with the required academic skills and top professional backgrounds.

The name of the PSA Peugeot Citroën/Toyota joint venture will be TOYOTA PEUGEOT CITROËN AUTOMOBILE CZECH (TPCA). Mr. Masatake Enomoto, will be appointed President of TPCA, when it is incorporated around April 2002. He will be assisted by Mr. Jacques de Raismes, appointed Vice-President of TPCA.

The Toyota/PSA Peugeot Citroën cooperation has proven quite successful: it began to operate in very good conditions, and now keeps being run in a smooth working environment. The time-table was strictly respected, and the objectives of site selection and joint-venture creation were met in due time.