File photo shows a line of 2012 Prius sedans at a Toyota dealership in the south Denver suburb of Littleton. Photo: AP Photo/David Zalubowski, File.

INTERNATIONAL – Toyota has agreed to buy out PSA Group’s stake in a jointly-managed Czech Republic factory specializing in the production of small cars, the companies said on Friday.

The French firm will also supply another model of a compact van for its Japanese partner from its Vigo plant in Spain as of 2019, they added in a statement.

Toyota will take full ownership of the Czech plant of Kolin from January 2021, and the factory will continue to produce “the current generation” of compact cars for the two companies.

It currently turns out Peugeot 108, Citroen C1 and Toyota Argo models.

“Toyota intends to continue production and employment in the future at the Kolin plant,” the companies said, without disclosing financial details.

PSA already assembles vans for Toyota at its Sevelnord plant in northern France.

On Tuesday, The company established a Toyota Wessels Institute for Manufacturing Studies (Twims), in Kloof in Durban with R50 million in grant funding from the Toyota South Africa Educational Trust, which received its seed funding from the Wessels family and Toyota Motor Corporation of Japan.