Fiat, PSA To Invest EUR700mn To Produce Vans
News: Italian automaker Fiat and French automaker PSA Peugeot Citroën will invest more than EUR700mn (US$900mn) in developing the new versions of their old vans at the SevelSud facility in Italy over the next five years. Fiat will spend EUR550mn (US$707.16mn), while PSA will spend EUR150mn (US$192.85mn) on developing the new version of the Fiat Ducato, Peugeot Boxer and Citroën Jumper range of light commercial vehicles. The SevelSud facility is jointly owned by Fiat and PSA under an agreement that is scheduled to expire in 2019.
BMI View: In 2013, we expect commercial vehicle (CV) production to decline as sales drop off further in Italy and across Europe, and the business environment remains weak across the region. Accordingly, we forecast a decline of 5% in Italy's LCV production, and a 1.5% drop in heavy truck production. BMI believes these declines reflect the weak business environment, and low sales volumes across the commercial vehicle (CV) segment in Italy and Europe more generally.