PSA Peugeot-Citroen is in talks to forge both engine and component-sharing alliances with rival vehicle manufacturers, reports the Financial Times (11/12/00).

Citing PSA chief executive Jean-Martin Folz, the FT says that the French auto-Group - which has already set up a diesel-engine alliance with Ford and a multi-purpose vehicle (MPV) venture with Fiat - is discussing a number of issues with several carmakers with some of these discussions set to go all the way to an agreement.

Folz said that the group's long-term strategy - a network of alliances - was more beneficial than either acquisitions or mergers.

He declined to comment on which carmakers were involved in the talks.