Automobile manufacturers Fiat and Peugeot Citroen have signed an agreement to jointly invest in the development of the new delivery vans.
Under the deal, both the companies will share the investment with which the new vans will be produced at the SevelSud plant in Italy.
Under the new cooperation deal, the joint venture factory in Val Di Sangro is expected to run untill 2019.
Both the companies currently produce the Fiat Ducato, Peugeot Boxer and Citroen Jumper models at the SevelSud plant.
Peugeot is also planning to invest over EUR750m to manufacture a new model at its SevelNord plant in order to keep the facility running.
The new investments for the plant are expected to be part of Fiat's plans to revamp its vehicle production in Italy.