Bloomberg reports that PSA Peugeot Citroen and Toyota Motor Corp. will get investment incentives of 1.3 billion koruna ($35.5 million) by 2004 for their future joint plant in the Czech Republic.

The report quotes the central European media group Hospodarske Noviny as the source.

The companies said last month they chose the Czech city of Kolin as the location for a new, 1.5 billion-euro ($1.3 billion) factory to build small, low-cost cars for the European market.

Production of the 1.0 and 1.4 litre cars in the joint venture is scheduled to begin in 2005. The plant is expected to have a production capacity of around 300,000 units per annum and the cars will be branded separately for Toyota and the two PSA marques.