COVENTRY, England -- Ford Motor Co. and PSA Peugeot Citroen said on Friday they had invested 350 million euros ($412.7 million) in a new V6 diesel engine, which will be manufactured in Britain.
"The total investment by Ford Motor Co. and PSA Peugeot in manufacturing and engineering for the V6 diesel program is 350 million euros," Nick Scheele, Chief Operating Officer of the world's second largest automaker Ford, told reporters.
Phil Lake, chief engineer of Ford Diesel Engine, said initial production of the V6 direct-injected common-rail diesel engine at Ford's Dagenham plant in east London would be up to 150,000 units a year.
Lake also said there was scope for further expansion of production as required and the engine would debut in the Jaguar S-type luxury car in 12 months.
PSA Chairman Jean-Martin Folz said the engine would be available in both Peugeot and Citroen brands and other Ford brands in Europe a few months after its debut in the Jaguar marque.
Scheele told reporters there were no current plans to produce diesel engines in the United States but believed that diesel had a "significant future" in the world's biggest car market.