FORD has extended a joint development agreement with PSA Peugeot/Citroen to develop a range of new common-rail diesel engines for the millennium. The agreement builds on a joint development programme begun last year, which will culminate in the launch of a 1.6-litre common-rail unit in the year 2001, the two firms have revealed.

The new development programme will centre on four areas and will see Ford benefit significantly from PSA's legendary diesel expertise. The areas are: A small diesel engine development programme which will see three-cylinder; 1.0-litre or four-cylinder 1.2-litre common rail diesel as one of the possible new units for use in the Citroen Saxo replacement, small Peugeots and Fords such as the Ka and Fiesta; creating a successor to the current PSA HDi range; building new V6 or V8 diesel engines; creating a common-rail diesel range for light commercial vehicles.

PSA Peugeot/Citroen will manage both the small aluminium and mid-sized HDi engine projects, while Ford will oversee development of the large diesel engines and the LCV diesel range. Ford's LCV plant at Dagenham will play a central role in production of common-rail engines for the LCV range as part of a £300 million investment in the plant.