PSA Peugeot Citroen and Ford Motor will halt cooperation on larger diesel engines. The two automakers jointly develop and manufacture the bulk of their diesel engines under a 12-year-old agreement.

Peugeot and Ford will each develop their own engines to replace diesels of 2 liters and above that they make together, the companies said in a joint statement on Thursday.

This decision has no impact on the current production of the existing jointly-developed engines, or the derivatives planned for Euro 6 emissions legislation which comes into effect from 2014. The decision will only affect as a first step commercial vehicles from mid-decade, Ford said in a statement.

Announcing plans in February for a broad-based alliance with Ford’s Detroit-based rival General Motors, Peugeot had said the tie-up would not affect existing partnerships including joint diesel-engine production with Ford.


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