Fiat Sells Stake in Sevelnord Venture to PSA

PSA Peugeot Citroen has finalized an agreement to acquire Fiat SpA's 50% stake in their commercial van joint venture in Sevelnord in northern France by Dec. 31.

The Italian carmaker says PSA will pay it a "symbolic" amount. The plant will continue to produce the Fiat Scudo van until Euro6 emission standards take effect at the end of 2016. Fiat declared last year it would exit the venture in 2017.

PSA agreed early this week to begin building a commercial van for Toyota Motor Corp. at Sevelnord in the second quarter of 2013. The vehicle will be based on the Citroen Jumpy and Peugeot Expert already made at the facility.

PSA said the Toyota pact hinged on winning concessions from Sevelnord's unions. Reuters reports that workers agreed on Thursday to a contract that includes a two-year pay freeze, reduced leave, involuntary overtime and the possibility of transfers to lower-paying jobs.