PSA Peugeot Citroën is to develop a new family of 1-litre 3-cylinder petrol engines with power ranging from 70 to 100hp. This engine will bring very significant reductions in fuel consumption and CO2 emissions and will enable the Group, currently the leader in low CO2-emitting vehicles, to maintain its competitive advantage. The aim is to bring to market vehicles with CO2 emissions below 100g/km without additional technology. Two extremely competitive manufacturing sites will be established, one in France, the other in Eastern Europe.

The first facility, with an annual capacity of 600,000 engines, will be operational as of 2011. It will be located in France on the PSA Peugeot Citroën site at Trémery and will enable the creation of over 500 jobs. In 2007, the Trémery plant, located 15km from Metz, manufactured 1.74 million engines. Since being set up in 1979, this world-class plant with 4,100 employees has produced over 30 million engines.

A second facility will be established in Eastern Europe by 2012. In order to find the best location for this additional engine-making plant, PSA Peugeot Citroën has begun looking at several countries in this region. The choice will be made in mid-2008.

This new manufacturing facility will strengthen the Group’s position in Eastern Europe, offering additional support to the commercial offensive in this region alongside plants in Slovakia (Trnava), the Czech Republic (Kolin) and Turkey (Bursa).