PSA Peugeot Citroën has announced the development of a new family of efficient petrol engines.

The 1.0-litre, three-cylinder units will have between 70 and 100bhp, very low fuel consumption and CO2 emissions under 100g/km without the need for additional technology.

A factory in France will be set up to build 600,000 engines a year from 2011, while a second will open in Eastern Europe by 2012.