A new flagship V6 diesel for the Jaguar S TYPE will be the first engine produced at Ford Motor Company's advanced £325 million Dagenham Diesel Centre, which was officially opened yesterday by Tony Blair.

The 2.7 litre, common-rail, direct injection V6 engine is the fruit of the third stage of the agreement between Ford Motor Company and PSA Peugeot Citroen. It will make its debut in 2004 in the Jaguar S-TYPE and makes use of a lightweight Compacted Graphite Iron (CGI) cylinder block.

The initial production volume of the new V6 engine will be up to 150,000 units per year, with the scope for further expansion as required. The engine will be installed in Jaguar and PSA Peugeot Citroen vehicles.

Mr. Blair joined Ford Motor Company President and Chief Operating Officer, Sir Nick Scheele, in touring the adjacent Dagenham Diesel Centre and Centre for Engineering and Manufacturing facilities.

Ford is investing £325 million in diesel engine engineering and manufacturing alone at Dagenham, which remains the largest industrial centre in the Greater London region. The CEME project was established with some £37 million funding from a private/public partnership led by Ford and the London Development Agency, together with Barking and Havering Further Education Colleges and London Riverside Limited.