Peugeot Citroen to continue city car collaboration with Toyota: report

According to European reports, PSA CEO Philippe Varin told German motoring publication Auto Motor und Sport that the French manufacturer will again work with Toyota on next-generation versions of the Citroen C1, Peugeot 107 and Toyota Aygo.

Currently built at a joint Toyota Peugeot Citroen Automobile (TPCA) facility in Kolin in the Czech Republic, the three minis were originally launched in 2005 and are expected to be replaced by all-new models in 2014. Exclusive to Europe, all three are powered by a choice of a 50kW/93Nm 1.0-litre three-cylinder petrol or a 40kW/130Nm 1.4-litre diesel.

The reported comments put to bed speculation that PSA's alliance with General Motors, entered into in February this year, had put its partnership with Toyota at risk.

The rumours followed PSA's decision to end a hybrid vehicle component joint venture and a hybrid engine production agreement with BMW after signing the deal with GM.

In April, PSA head of communications Xavier Crespin admitted there was no alternative but to view the alliance with GM, which aims to build new vehicles and technologies by 2016, as necessary for the brand's survival.

"It’s the best security for PSA,” Crespin said.

The GM alliance came after the US automotive giant acquired a seven per cent stake in PSA Peugeot Citroen in March 2012.