PSA Peugeot-Citroën and the Ford Motor Company are combining in a 1bn euro design/build programme which will deliver two new common rail direct injection diesel engines by the second half of 2003.

The engines, a new 1.6 litre and 2.0 litre, are scheduled to gradually equip both partners' model line ups and they claim they will both boast fuel economy, clean combustion, low running noise and outstanding performance.

Production capacity will ultimately exceed 1,600,000 engines a year, providing most of the diesel powerplants in the core model lines of each partner.

The 1.6 Litre all-aluminium engine will be known as the as the HDi 1.6 litre in PSA Peugeot-Citroën's cars and the Duratorq TDCi 1.6 litre in Ford models and will be available in 110 bhp (80 kW) and 90 bhp (66 kW) versions. They will equip more than 37 different vehicle versions of both partners.

Certain versions of the 1.6 litre HDi/TDCi, equipped with the FAP particulate filter system, will offer extremely low emissions in early 2004, thus anticipating the Euro IV regulations applicable in January 2005.

The second new engine will be a 2.0 litre unit which will be known as the HDi 2.0 litre and the Duratorq TDCi 2.0 litre.