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by Tim Beissmann

French manufacturing giant PSA Peugeot-Citroen has plans to produce two all-new low-cost vehicles targeted specifically at developing countries and their booming automotive markets, according to French newspaper Les Echos.

PSA is reportedly hard at work on the two cut-price vehicles, the first codenamed “global small” and the second a mid-sized sedan known as “M3-M4” set to follow in sometime in the future.

According to PSA, the two fall outside its short-term product line-up, which spans from 2010 to 2012. However, last November PSA earmarked the period of 2010 to 2013 as a time to boost profitability by expanding sales beyond its current established markets. Eventually it plans to increase its market share in China to eight percent, up from 3.5 percent in 2009.

Emerging markets like Brazil, Russia, India, China and Iran are believed to be the new vehicles’ key markets, with production likely to take place in Russia, China and areas of Latin America.

Global development partner Mitsubishi is known to be working on its own small car, and the platform of this vehicle could potentially form the basic underpinnings of the Peugeot- and Citroen-badged global small. It is understood Mitsubishi’s small car is being designed with the capability of being produced in China, India, Thailand and Latin America, as well as Japan.

Both French brands are expected to keep their styling consistent in developing markets and it is believed the two compacts will take visual cues from the Citroen C3 and Peugeot 207 hatches.




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