Sevel, a joint venture between Fiat Auto SpA and PSA Peugeot Citroen, launches production of its first wave of new commercial vehicles – the Fiat Ducato, Citroen Boxer and Peugeot Jumper – at its Sevel Sur plant in Val di Sangro, Italy.

Production of a second family of vehicles, stemming from a €1.1 billion ($1.4 billion) project codenamed X250, will begin later this year at Sevel Nord in Valenciennes, France. Those vehicles will bear Fiat, Lancia, Citroen and Peugeot badges.

A third vehicle, described as a minivan, will be launched later. It will be assembled in Turkey.

Fiat and PSA also expand their cooperation by announcing plans to build a gearbox at a Fiat plant in Cordoba, Argentina. The component will be installed in Peugeot and Citroen cars sold in South America.

The 10-year deal calls for annual production of 140,000 transmissions.