KEY POINTS:
The Peugeot-Citroen group is to develop a new family of 1.0-litre, three-cylinder petrol engines with power ranging from 52-75kW.
The company's stated aim is to bring to market vehicles with CO2 emissions below 100g/km without additional technology.
Two competitive manufacturing sites will be established - one in France, the other in Eastern Europe.
The first French facility, with an annual capacity of 600,000 engines, will be operational in 2011.
The second Eastern European facility will be established in by 2012.
The location will be announced in the middle of this year.
