PSA Peugeot Citroen has unveiled the details of a second phase of its diesel-engine cooperation with Ford.

It said the two companies were investing or had invested a total of nearly one billion euros between 2001 and 2003 to make new 1.6-litre and 2.0-litre diesel engines.

The two companies expect to produce 1.6 million of the engines per year by 2005.

The plan is part two of a four-stage cooperation venture announced in 1998, which has an eventual production target of three million diesel engines a year.

The engines required an aggregate investment of nearly €1 billion. Production capacity will ultimately exceed 1,600,000 engines a year, providing most of the diesel powerplants in the core model lines of each partner.

The 1.6 litre engine will be known as the HDi 1.6l in PSA Peugeot Citroën's cars and the Duratorq TDCi 1.6l in Ford models. The engines will be available in 110 hp (80 kW) and 90 hp (66 kW) versions. They will equip more than 37 different vehicle versions of both partners.

The 1.6-litre HDi/TDCi engine features all-aluminium construction, which has kept its weight down to 120 kilogrammes making it suitable for use in small cars. Its combustion system includes a Bosch second-generation common rail injection system with maximum pressures of 1,600 bar. The system also uses the multiple injection technique enabling up to six injections per engine cycle.

PSA said that versions of the 1.6-litre HDi/TDCi, will be equipped with the FAP particle filter system, offering extremely low emissions in early 2004, ahead of Euro IV regulations which become applicable in January 2005.

Investments made between 2001 and 2003 to produce 1.6-liter and 1.4-liter, 16-valve engines will amount to more than 800 million euros.

PSA Peugeot Citroën and Ford are also introducing a second-generation 2.0-litre engine known respectively as the HDi 2l and the Duratorq TDCi 2.0l.

PSA says the new powerplant represents the latest development in the 2.0-liter HDi family, which has equipped PSA Peugeot Citroën's mid- and upper-range cars since 1998. The new engine will be available upon introduction in a Euro IV compliant version with the FAP filter.

The engine's new-generation common rail direct injection system is supplied by Siemens. It manages up to six different injections and delivers an injection pressure of 1,600 bar.

PSA says that the new 2.0-liter HDi/Duratorq TDCi engine will give users a 'drivability that will immediately establish it as a market benchmark'. At 136 hp (100 kW), PSA says it offers 25% more power than its predecessor, with fuel consumption comparable. The company also says that the engine designers focused more on torque than on power, providing a 36% torque increase to enhance drivability and flexibility.

The engines will be manufactured at PSA Peugeot Citroën's Trémery plant in the Lorraine region of eastern France. Some 159 million euros was spent on adapting the plant's existing production line to handle the new engines.