PSA has announced it will start selling flexible fuel cars that can run on E85 in France from the summer of 2007.

The first ethanol models to go on sale will be versions of the Peugeot 307 and Citroen C4. All PSA European models can currently run on gasoline with a 10% mix of ethanol. E85 is 85% ethanol and 15% gasoline.

The cars will be produced at PSA plants in Sochaux and Mulhouse.

PSA already produces vehicles that can run on E85 for the Brazilian market at its plant in Porto Real, Brazil.

PSA will also continue to help develop the market for biodiesl and use it for its own fleets, which cover around 14m km annually. They run on 30% biodiesel (diester- B30).