Peugeot Citroën commits to French production

PSA Peugeot Citroën plans to invest €175m (£154.6m) at its La Française de Mécanique plant in Douvrin, northern France, to prepare for the production of a new three-cylinder turbocharged petrol engine.

The investment follows on from the group’s decision to extend its line-up of three-cylinder petrol engines currently under development by adding a turbocharged version to the naturally aspirated versions.

This new family of three-cylinder engines will include the 1l and 1.2l naturally aspirated versions to be produced at the Trémery plant beginning in 2012, with capacity of 640,000 units a year, and the 1.2l turbo versions to be produced at Douvrin beginning in 2012, with capacity of 320,000 units a year.

The La Française de Mécanique plant supplies Peugeot and Citroën models with petrol and diesel power plants, including the EP petrol engine developed in co-operation with the BMW Group.

With the investment, PSA Peugeot Citroën has confirmed its commitment to maintaining extensive engine production operations in France.

La Française de Mécanique is an equal joint venture between PSA Peugeot Citroën and Renault, with 3,400 employees. Its machining and assembly lines produce 6,200 engines per day. Output in 2009 totalled 1.3 million units, of which 942,000 for PSA Peugeot Citroën.