PSA Peugeot Citroen will develop a new family of one-litre three-cylinder petrol engines with power ranging from 70 to 100hp. The aim is to bring to market vehicles with CO2 emissions below 100g/km without additional technology.

The first facility, with an annual capacity of 600,000 engines will be operational in 2011. Located on the PSA site in Trémery, north-east France, it will create over 500 jobs.

A second facility will open in Eastern Europe by 2012. A decision regarding location is expected by mid 2008.

The new production site will strengthen the group’s position in Eastern Europe. It already has plants in Slovakia, Czech Republic and Turkey.