Jaguar on Friday confirmed one of the industry’s worst kept secrets: it will introduce to its model line a new high performance 2.7-litre V6 diesel engine developed in a joint venture between PSA Peugeot Citroën and Ford.

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Jaguar will be the first marque to get the new common-rail diesel engine – in the S-type next year – followed by Peugeot, Citroën and Ford brands.

It will be produced at purpose-built facilities at Ford’s diesel centre at Dagenham, in the UK, where Ford cars were built until recently.

The investment by Ford and PSA Peugeot Citroën in manufacturing and engineering the V6 diesel engine programme is E350 ($380) million.

The 24-valve 2.7 litre V6 will be available in a range of power, torque and emission specifications. The engine features high pressure, common-rail, direct injection fuel system and the use of a lightweight compacted graphite iron (CGI) cylinder block. A claimed industry first for high volume cylinder block manufacture, CGI achieves a lightweight, compact structure of outstanding strength and stiffness for enhanced durability and noise attenuation.

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Jaguar chairman Bob Dover said: “Competition is fierce in the premium diesel market and expectations of a Jaguar diesel are particularly high.”

Jaguar said the advanced design of the V6 engine ensures that it is Euro IV-capable and, with a filter, particulate emissions are reduced to a level where they are almost undetectable.

The new engine will be offered with power outputs of up to 207 PS and torque outputs of up to 440Nm (EEC) for a number of applications by Ford and PSA Peugeot Citroën.