PARIS, May 12 (Reuters) - French car maker PSA Peugeot Citroen (PEUP.PA) said it would not renew a northern France joint venture with Italy’s Fiat FIA.MI after 2017 but pledged to invest 355 million euros ($511 million) over three years at other plants in the Nord Pas de Calais region.
“PSA Peugeot Citroen and Fiat will continue to jointly produce vehicles at the Sevelnord plant until 2017, but the two partners have decided not to renew their joint-venture agreement after that date due to diverging product strategies,” PSA said in a statement on Thursday.
The factory, near Valenciennes, makes commercial vehicles including the Peugeot Expert, Citroen Jumpy and Fiat Scudo.
PSA said the two companies would produce the Peugeot Boxer, Citroen Jumper and Fiat Ducato until 2019 in Val di Sangro, Italy as part of their light commercial vehicle cooperation.
PSA said it would invest 220 million euros between now and 2014 in its Valenciennes plant for the production of a new dual clutch transmission.
The company will also launch a 135 million-euro investment programme at the Francaise de Mecanique plant in Douvrin. ($1=.6948 Euro) (Editing by James Regan)