UPDATE: PSA to Expand Van Production in U.K.

PSA Group has ended a British vanmaking venture between its Vauxhall unit and Renault SA, freeing capacity to build more of its own vans.

The venture currently makes Opel/Vauxhall Vivaro midsize vans (pictured) at Vauxhall’s factory in Luton, England. The vehicles ride on the same platform that carries the Renault Trafic van, which also was assembled at Luton in the past.

PSA says scrapping the venture with Renault will enable Luton to produce the next-generation Vivaro, which will ride on PSA’s “EMP2” platform, due next year. The switch also will enable the factory to make PSA’s Citroen Jumpy and Peugeot Expert commercial vans.

The production shift is being aided by £9 million ($13 million) in government aid. PSA CEO Carlos Tavares tells reporters that PSA’s decision to boost van production in England is in spite of possible new tariffs resulting in the U.K. decision to exit the European Union. He adds that there is “still work to do to ensure frictionless trade.”