PSA Peugeot Citroen is spending 315 million euros ($US314 million) to double production of small diesel engines for its Peugeot 206, Citroen C3 and Ford’s Fiesta and Fusion lines at a plant in Tremery, France, reports said.

PSA has added 300 workers for the new assembly line, which will make 2,500 1.4-litre engines daily.

Ford and Peugeot Citroen jointly develop and build diesel engines.

The 1.4 was first to appear and a future V6 of around 2.5-litres is expected to find its way into a number of Ford Europe-produced models including Jaguar’s X-type.