The Kolin plant will continue to produce the current generation compact A-segment models for the two companies.

The plant will become a subsidiary of TME, joining the seven other plants Toyota already operates in Europe. The Kolin plant will continue to produce the current generation compact A-segment models for the two companies.

Toyota intends to continue production and employment in the future at the Kolin plant. Marking the agreement, TMC Executive Vice-President Didier Leroy said: "Today's announcement reflects the complementarity and excellent relationship that exists between Groupe PSA and Toyota. Our agreement allows each company to play to its strength while sharing technology and development costs. Our commitment to the Kolin plant demonstrates Toyota's philosophy of producing cars where we sell them and our long-term manufacturing presence in Europe."

Carlos Tavares, Chairman of Groupe PSA's Managing Board, added: "We open a new chapter of our successful and mutually beneficial partnership, based on our trusting relationship for the best advantage of our clients, and our companies."

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