Ford and Peugeot get together to launch diesel engines

Ford and Peugeot get together to launch diesel engines
PSA Peugeot-Citroen and Ford Motor Co disclosed their plans to launch production of two new rail diesel engines. This is an extension of their joint diesel production venture which was flagged off in 1998. The car majors hope to up their production by around 85 percent in the next five years, in this the fourth phase. It will see an investment of €332 million (₤183 million).

Their annual target is to make 200,000 units of each engine at plants located both in Britain and France. The new engines will be targeted at the light commercial and premium passenger vehicles. While Ford will start production of the 2.2 liter commercial vehicle engine at its Essex's Dagenham plant located in Britain, Peugeot will manufacture the 2.2 liter engines for upmarket medium and large executive sedans at its Tremery plant in Eastern France.

As of now, they manufacture four diesel engines, starting from 1.4 liter engines. The diesel engine being made for executive passenger cars will introduce a new Extreme Conventional Combustion System (ECCS). It is reported to reduce emissions at source and is also believed to improve the performance.

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With the latest investment, Ford's spending on development of diesel engines in Dagenham will go up to ₤560 million.

Though diesel engines face competition from hybrids, the manufacturers of the former are still hoping to increase their market share in the wake of high fuel prices. However, Jean Martin Folz, chief executive of PSA Peugeot Citroen, has a different opinion on viability of hybrids when he said, “They (hybrids) do not have long-term economic prospects because they are a lot more expensive to produce with the same result".