Ford and Peugeot Citroen to end cooperation on larger diesels image

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.