A source has told Les Echos that "an amendment to the existing [diesel engine] contract should be signed before the summer". The current partnership was due to end in 2017.
PSA is due to begin rolling out its new generation of diesel engines, dubbed DV-R, from 2017 when the Euro 6.2 emissions regulations start taking effect. The new DV-R motors will replace the company's existing 1.4- and 1.6-litre turbo-diesel engines (below).
According to Automotive News Europe, from 2017 the French automaker will be able to produce up to 640,000 DV-R engines annually at its Douvrin facility in the north of France. From 2018, a second plant, at Tremery, will come on stream with a capacity of a further 640,000 engines per year.
The French financial newspaper claims that Peugeot will supply unfinished DV-R engines to Ford, which will then complete their manufacture at a plant in the UK, likely Dagenham, on the outskirts of London.
Ford and PSA Peugeot Citroen began collaborating on diesel engines back in 1998, and since then the French-American alliance has produced around 26 million turbo-diesel powerplants together.