SALES of Peugeot and Citroen cars in central Europe have more than offset a sharp downturn resulting from the economic crisis in Asia. Demand from Poland, Hungary, the Czech Republic and Turkey rose by 45% in the first six months of this year, according to PSA president Jean-Martin Folz.

'Overall, sales outside western Europe rose by 4% to 166,900 vehicles, which represents 14.6% of our total unit sales in the period. We are confident that our new model programme will help us lift that proportion to 25% of total business during the next decade,' said Folz as the Picasso - PSA's answer to the Renault Megane Scenic - was being unveiled by Citroen.

Due to be launched in 12 months' time, the sleek mini people carrier is designed to offer high levels of comfort for five adults. Longer than a Xsara but shorter than the Xantia, it has the luggage capacity of an estate car. Promising to be the first volume production car to feature a multiplex electrical system, it will offer a choice of 1.6 or 1.8-litre petrol power or the new 2.0-litre HDI diesel unit.