PSA: Toyota City Car Venture in Europe Will Continue

PSA Peugeot Citroen CEO Philippe Varin tells Germany's Auto Motor und Sport that the company will continue to jointly develop and produce city cars with Toyota Motor Corp.

Varin's comment aims to end speculation that the 8-year-old partnership might not be renewed after General Motors Co. bought 7% of PSA last year. The two companies have formed a strategic alliance to co-develop B- and C-segment vehicles to sell under their own brands.

PSA and Toyota have been co-producing the Toyota Aygo, Citroen C1 and Peugeot 107 at their Toyota Peugeot Citroen Automobile plant in Kolin, Czech Republic, since 2005.

All three models are due for a redesign next year, according to Reuters. The news service says the three brands sold 108,700 vehicles in Europe through the first seven months of 2013, down 16% from the same period last year.