In a neat bit of quid pro quo, PSA Peugeot-Citroen is to supply Mitsubishi Motors Corporation with 2.2-litre common-rail, direct-injection diesel engines from mid 2007.

The engines will go into both Mitsubishi’s new Outlander crossover and the versions the Japanese automaker is making for sale under PSA’s Citroen and Peugeot brands from mid-year.

Mitsubishi launches the Outlander in Europe this month and will add a new diesel version powered by the 2.2-litre PSA diesel later in the year.

A Mitsubishi Europe spokesman stressed the PSA engine would supplement, rather than replace, the also-bought-in Volkswagen two-litre turbodiesel available from launch.

“Europe is a very strong diesel market and this will give us two engines to offer – a medium power and a high-power alternative,” he noted.

The Outlander-based Peugeot 4007 and Citroën C-Crosser will be launched in mid-year.

The engine supply agreement was not in the original plan that led to MMC supplying derivatives of its new crossover model to PSA.

“[It] means that the two companies extend their operational ties into the field of component supply. This highlights the good relationship of the two groups,” MMC said in a statement, adding: “Mitsubishi Motors and PSA Peugeot Citroen will pursue their cooperation strategy in “win-win” areas.

Mitsubishi last week announced at the Detroit motor show that it is developing a new diesel engine to meet tough new US emissions rules. Due out there in the Lancer there in 2010, it is based on a turbodiesel being developed with Mitsubishi Heavy Industries for the European market.

Graeme Roberts