France Confirms PSA, Toyota Talks On Sevelnord Plant

French President Nicolas Sarkozy tells La Voix du Nord newspaper that PSA Peugeot Citroen is in discussions with Toyota Motor Corp. about making commercial vehicles at PSA's van plant in Sevelnord, France.

"Sevelnord will be OK," declares Sarkozy, who says he discussed the factory in a meeting last week with PSA CEO Philippe Varin, according to the newspaper. The factory, which has about 2,800 employees, is a sensitive issue in France's upcoming presidential elections.

PSA said in January it needed a new partner at the facility to replace Fiat SpA, which plans to withdraw from the vanmaking venture in 2017. Bloomberg News reported the Toyota talks in late March.

Toyota has said only that it won't buy an equity stake in Sevelnord.

PSA tells Reuters that even if a partner were found, the French carmaker would still need to decide whether the factory is as competitive as alternative facilities.