Peugeot To Supply Mitsubishi With Diesel Engines

TOKYO/PARIS (Reuters) - France’s PSA Peugeot Citroen (PEUP.PA) will supply Japan’s Mitsubishi Motors Corp. (7211.T) with diesel engines from the middle of this year, extending their operational ties in the field of component supply.

Under the deal, PSA Peugeot Citroen will start supplying Mitsubishi Motors with its state-of-the-art 2.21 common-rail, direct-injection diesel engine from mid-2007, the two car makers said in a joint news release on Wednesday.

This engine will be fitted with a PSA Peugeot Citroen engine patented particulate environment-friendly filter.

Mitsubishi Motors, which is to introduce its new sport utility vehicles (SUVs) model, the Outlander in Europe this month, will toward the end of 2007 add a new diesel version powered by the 2.21 diesel engine.

The four-wheel drive vehicles, the Peugeot 407 and Citroen C-Crosser models, which are part of a previous cooperation agreement between the two companies, will also benefit from this new engine upon their commercial launch in mid-2007.

In July 2005, the two companies joined forces to work on an SUV-type 4WD vehicle for PSA Peugeot Citroen based on a new platform already under development at Mitsubishi.

additional reporting by Dominique Vidalon in Paris

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