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PSA/Peugeot-Citroen is planning to build a low-cost car specifically for emerging markets. It will be a cheap, five-seat model built around mechanical components from inside the group.

The new entry-level car will be a rival for the Renault Logan and the forthcoming Fiat Topolino. The Logan has been a runaway sales success since it was introduced in 2007, selling 367,000 units so far. PSA’s new model will be sold using the Peugeot and Citroen names throughout eastern and central Europe, Russia, Turkey and north Africa.

Four suitable factory sites are currently being assessed in Romania, Ukraine, Turkey and Poland. The new model is expected to use the 1.0-litre three-cylinder engine from the C1/ 107/ Aygo, and it will sit on a modified version of an existing platform.

PSA boss Christian Streiff has said that a five-seat saloon could eventually be sold in other emerging markets, including China and South America, but he stated that the car would not come to western Europe.

George Barrow

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