The French manufacturer PSA PEUGEOT CITROEN and its Japanese counterpart have concluded an agreement covering the joint development and production of small cars sold for less than EUR 8,000. A 50-50 joint venture will be created to this effect by the end of the year. Around EUR 1.5 billion will be dedicated to this project, which includes the development of a joint platform and the construction of a new factory with an annual capacity of 300,000 units, which will begin production in 2005.