Ford, PSA end tie-up on large diesel engines
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TURIN - Ford Motor Co. and PSA/Peugeot Citroen said they will end their partnership for joint development of large diesel engines.
Both companies said the move was not related to PSA's new alliance with General Motors Co.
The decision to develop larger diesel engines separately "was being discussed with PSA well before the GM-PSA announcement," a Ford spokesman told Automotive News Europe on Thursday. A PSA spokesman also said the decision "was not due to our alliance with GM."
A joint Ford-PSA statement said the two companies "have decided to independently develop and manufacture their larger diesel engines (2.0-liter and above) to meet their future needs as well as new regulations."
Light commercial vehicles built after 2015 will be the first to use large diesel engines developed and built separately, the companies said.
Ford said the cooperation with PSA will continue in medium displacement 1.4-liter to 1.6-liter diesels, which accounted for about 75 percent of the more than 20 million engines the two partners have built in the last 12 years.
Ford uses the large diesels for its Focus and Mondeo cars, C-Max, S-Max and Galaxy minivans and Kuga SUV. PSA offers the engines in cars and minivans including the Peugeot 308, 407 and 508 models and Citroen C4, C5 and C8.
GM agreed in February to buy 7 percent of PSA as part of an alliance to cooperate on purchasing and vehicle development in a bid to cut costs in Europe.
You can reach Luca Ciferri at lciferri@crain.com.
