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PSA Peugeot-Citroen has announced that it will produce a family of cleaner 1.0-litre, three-cylinder engines, with power outputs ranging from 70 to 100bhp.

The main aim of the new units is to reduce emissions to below 100g/km without any trick hybrid technology.

A new manufacturing plant is being built on PSA’s existing Trémery site in France to cope with production of the new engines.

It’s forecast that the new factory will be operational from 2011, and be will able to produce 600,000 engines per year. The deal will create a further 500 permanent jobs at the Trémery site.

PSA is also planning to build a second engine-making plant in Eastern Europe to offer more support to the three existing factories in the region, situated in Slovakia, the Czech Republic and Turkey.

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