Peugeot, Toyota Sign Light Vehicle Deal

French carmaker PSA Peugeot Citroen has reached a deal to provide Japan's Toyota with light commercial vehicles for sale in Europe, the two companies said in a statement Monday.

The deal comes with Peugeot under fire in France after having announced earlier this month plans to cut 8,000 jobs and to close its historic Aulnay plant near Paris because of falling European sales.

The statement said PSA will provide Toyota with medium-sized vans derived from its existing vehicles and the two companies will then work together on developing a new generation of vehicles.

"Under the plan, Toyota Motor Europe is to participate in the development and industrial investment costs for the next generation product," the statement said.

"There are no plans for the two companies to enter into capital tie-ups or joint production."

Cooperation is expected to last "beyond 2020," it added.

No financial details were disclosed.

The statement also made no mention of where the vehicles would be built but Peugeot was known to be looking for a partner for its Sevelnord plant in northern France after Italy's Fiat pulled out of a joint venture there.