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Ford, PSA to End Big-Diesel Engine Partnership

Ford Motor Co. and France's PSA Peugeot Citroen say they will phase out their 12-year-old tie-up to jointly develop and produce diesel engines that displace 2.0 liters or more.

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Ford Motor Co. and France's PSA Peugeot Citroen say they will phase out their 12-year-old tie-up to jointly develop and produce diesel engines that displace 2.0 liters or more.

The partners say they will develop those larger engines independently for use after 2015. Both companies say their decision is not related to the new alliance PSA and General Motors announced in February.

Ford and PSA say they will continue to share production of already developed diesels that displace between 1.4 liters and 1.6 liters. Those powerplants account for three-quarters of the 3 million units the companies jointly produce annually. The partners also intend to continue joint work on updates to those engines to meet new European emission rules for 2014.

Diesels produced by the partners are used in Ford's Focus and Mondeo cars, C-Max, S-Max and Galaxy MPVs and Kuga crossover. PSA employs the engines in its Peugeot 308, 407 and 508 cars and Citroen C4 and C5 and C8 minivans.

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