PARIS -- PSA Group will launch a "free floating" car-sharing scheme in Paris during the final quarter of 2018. The program will allow drivers to pick up an electric vehicle at one location and leave it elsewhere in the city, the automaker said in a statement.
PSA said it planned to initially have about 500 electric Peugeot and Citroen cars available in the French capital.
Last month Paris and other local governments canceled their contract with car-sharing service Autolib, which started operations in 2011.
The move came after Autolib's operator, Bollore, predicted losses totaling 300 million euros over the next five years and asked for taxpayers to pick up much of the cost. Users also complained about dirty, poorly maintained cars.
Bollore, a French conglomerate, also manufactures Autolib's 4,000 electric minicars.
Autolib's failure was a blow to Paris Mayor Anne Hidalgo, who has tried to tackle air pollution by encouraging people to use electric cars instead of gasoline and diesel-powered vehicles.