PSA Peugeot Citroen does not fear a possible alliance between Fiat and Opel, a Peugeot director has said.

In an interview published on Monday in Italy's La Repubblica newspaper, Jean-Philip Collin said it was better to focus resources on products, distribution network and customers in this current global financial crisis, Reuters reported.

"We do not fear a possible alliance between Fiat and Opel. The car world is certainly not in its first phase of consolidation, we have always been working in a competitive scenario," Collin was quoted as saying.

"In periods like this, of scarce liquidity, the best thing is to concentrate resources on few and selected activities: renewing products, strengthening the [dealer] network and satisfying clients," he added.

Collin also said Peugeot would introduce electric city cars at the end of 2010.

Renault is expected also to start selling pure electric vehicles next year.