Peugeot to supply engines to Mitsubishi Motors

17th January 2007, Comments 0 comments

TOKYO, Jan 17, 2007 (AFP) - PSA Peugeot Citroen of France will supply diesel engines to Japanese automaker Mitsubishi Motors starting later this year, the two companies said Wednesday.Under the accord, the French auto group will ship direct-injection diesel engines to a Mitsubishi Motors factory in Japan to be installed in the Outlander, a sports utility model.Mitsubishi Motors will then export the vehicles to Europe, a Mitsubishi Motors spokesman said, adding that it aims to ship 30,000 units a year to th

TOKYO, Jan 17, 2007 (AFP) - PSA Peugeot Citroen of France will supply diesel engines to Japanese automaker Mitsubishi Motors starting later this year, the two companies said Wednesday.

Under the accord, the French auto group will ship direct-injection diesel engines to a Mitsubishi Motors factory in Japan to be installed in the Outlander, a sports utility model.

Mitsubishi Motors will then export the vehicles to Europe, a Mitsubishi Motors spokesman said, adding that it aims to ship 30,000 units a year to the European market.

Last week, the Japanese company denied reports that it was set to partner with Peugeot to build a 50 billion yen (414 million dollar) factory in the suburbs of Saint Petersburg with an annual output capacity of 200,000 vehicles.

However, it confirmed it had started a feasibility study on the possibility of local assembly in Russia in response to fast growing sales there.

Coypright AFP

Subject: French News

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