PSA Peugeot Citroën has announced plans to develop a new family of one-litre three cylinder petrol engines capable of 70 to 100hp.
PSA claims the engine will bring ‘very significant’ reductions in fuel consumption and will emit less that 100g/km of CO2 without additional technology.
Two factories, one in France and the other in Eastern Europe, will be built to manufacture the engines.
The first facility, with an annual capacity of 600,000 engines, will be operational by 2011. It will be located in France on the PSA Peugeot Citroën site at Trémery and will lead to the creation of over 500 jobs.
A second facility will be established in Eastern Europe by 2012 to offer support to plants in