The Peugeot 108 and Citroen C1 are set to be discontinued, but Toyota will be going it alone with the next-generation Aygo.
PARIS – The long-standing city car partnership between Peugeot parent company PSA and Toyota is set to come to an end, with inside sources telling Reuters that the Peugeot 108 and Citroen C1 are set to be discontinued.
The source also said that there would be no replacements for the French city cars as the carmaker planned to vacate the A segment business altogether. According to Reuters, the cost of meeting modern emissions standards is pushing up the cost of entry-level cars to the point where they are hard to justify economically.
However, another PSA source implied that the upcoming merger with Fiat Chrysler could open the door to other small car projects further down the line, particularly with Fiat remaining committed to models like the Panda and 500, the latter of which is becoming electric-only in its second generation.
It should be a similar story for the Volkswagen Up, with many sources abroad having reported that the budget hatch is looking set to be replaced by a battery-powered MEB-based car called the ID.1.
But with PSA pulling out of the city car joint venture in Europe, where does this leave the future of Toyota’s Aygo, which is closely related to the 108 and C1?
According to Autocar, Toyota will take full control of the Czech assembly plant that builds the city car trio, with a view to capitalising on the exit of other manufacturers from the segment. This means that Toyota will be going it alone with the next-generation Aygo, which is set to be launched with combustion engines only, at least until batteries become more cost-effective.
A source also hinted that the next Aygo would have a less traditional body style, and that, of course, would almost certainly translate to ‘more SUV-like’.