PSA Peugeot Citroen will supply Toyota Motors Europe with re-badged LCVs from the middle of next year following the signing of an agreement between the two companies this week.

This will enable Toyota to re-enter the European LCV market following the demise of the Hiace, having fallen foul of Euro 5 emissions legislation. We will begin to see the first of these vehicles in Q2 of 2013. The agreement also includes collaboration on next generation vehicles which are to be produced by PSA Peugeot Citroen.  The collaboration is expected to last beyond 2020.

"We are delighted to announce today the enlargement of the scope of our successful cooperation with Toyota. This agreement launches the development of a new generation of mid-size Light Commercial Vehicle  offering both companies a competitive product for the European market" said Jean-Christophe Quemard, PSA Peugeot Citroen programmes executive vice president.

"The Light Commercial Vehicle segment is an important one for us in many markets throughout Europe," said Toyota Motor Europe President and CEO Didier Leroy. "By joining forces with PSA Peugeot Citroen, we have found a good solution for our loyal customers following the recent discontinuation of our own Hiace model.  We already enjoy a successful joint-venture partnership with PSA Peugeot Citroen in the small car segment and they are a leader in the European light commercial vehicle market, with a solid reputation for quality and versatility."