Within the next two years, PSA/Peugeot-Citroen will be spending up to 175 million euros ($238,000) for the production of turbocharged versions of its new low-emission, three-cylinder gasoline engine family in Douvrin, northern France.
PSA intends to start producing the new 1.2-liter turbocharged three-cylinder engine in 2012 and aims to build 320,000 units annually.
PSA has previously announced that in 2012, it will also start producing 640,000 naturally aspirated versions at the three-cylinder powerplant in Tremery, eastern France. Those engines will have 1.0- and 1-2-liter displacements. In 1969, the Douvrin engine factory opened as a joint venture with Renault.
Last year, the factory produced 1.3 million engines, 942,000 units of which are for PSA. It has yet to be confirmed which PSA vehicles will be getting the new three-cylinder engines.
However, industry insiders are saying that the powerplants are likely to be used in the Peugeot 107 and Citroen C1 minicars, Citroen C2 and C3 small cars, and Citroen C4 and Peugeot 308 subcompacts.
In a statement, PSA CEO Philippe Varin said that the new engines will aid in the company's aim to continue to lead in the production of low-carbon vehicles.