After 10 years and 16.5m engines, Ford and PSA Peugeot Citroën’s diesel joint venture is developing new Euro 6 emission rules-compliant motors.

A new, sixth stage agreement covers a range of engines the two automakers said will deliver improved fuel economy, reduced CO2 emissions, and enhanced performance. Production is scheduled to start in 2013 following an estimated EUR300m spend.

“Ten years ago our two companies signed an agreement to cooperate on the development and manufacture of advanced diesel engines,” said Ford Europe chairman and CEO Stephen Odell. “That co-operation, which we named the Gemini Project, had an ambitious objective: to combine our joint expertise to deliver a broad range of world-class, high-technology diesel engines while providing significant economies of scale.

“By working closely together over the past decade, we have achieved our objective, and the cooperation has proved to be one of the most enduring and successful partnerships in the global automotive industry. Together we are the largest manufacturer of high-technology diesel engines in the world. Building on that achievement, we are now looking to the future and taking our co-operation forward into its second decade.”

PSA chairman and MD Philippe Varin added: “The co-operation has given both PSA and Ford shared access to diesel engine technologies, while delivering scale advantages. But perhaps the real success of the Gemini project lies in the way that cross-functional and cross-company teams – based in Britain, Germany and France – have worked together to develop a highly successful and acclaimed range of market-leading diesel engines. By reaffirming and strengthening our co-operation, we are ensuring that we will continue to be at the forefront in meeting future CO2 challenges.”

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The two automakers spent a combined EUR2bn on the first five phases of the JV which can now build up to 3m engines a year. They are currently used in about 30 vehicle applications by Peugeot, Citroën, Ford, Mazda, Jaguar, Volvo and Land Rover.

PSA Peugeot Citroën builds the diesels at Tremery (1.6-, 2.0-and 2.2-litre) and Douvrin in France (1.4-litre) and Ford has plants at Dagenham in the UK (1.4-, 1.6-, 2.2- and 3.0-litre) and Chennai, India (1.4-litre). Volvo Cars builds a two-litre version in Skövde, Sweden.

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