PSA Peugeot-Citroën is spending EUR60m (US$79m) in the initial phase of production of a new family of Euro 6.2 compliant diesel engines to be built at its factory in Douvrin, northern France.

The company said in a statement that the new family, called DV-R, will replace the existing 1.4 and 1.6-litre units used across both brands and will be rolled out from 2017.

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The Douvrin facility, chosen because of the efforts made by the workforce to increase competitiveness, will have an annual capacity of 640,000 engines.

In 2018, a second production module, also with an annual capacity of 640,000 engines, will be installed at the Trémery facility in eastern France.

PSA said the decision to build the engines in France reaffirmed its commitment to “maintaining deep manufacturing roots in France and increasing capital projects in its home market”.

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