Peugeot-Citroen preparing low-cost car

PSA Peugeot Citroen is to follow its fellow frenchman Renault into the ultra-low cost car market. PSA is preparing a new entry-level car that will be produced and sold in emerging markets starting in 2011. The new low-cost model could be built in Turkey and Poland and likely to be powered by a 1.0-liter three-cylinder engine.

It will initially be sold in eastern and central Europe, Russia, Turkey and north Africa under the Citroen and Peugeot brand names. PSA CEO Christian Streiff said the five-passenger sedan could eventually be sold in other emerging markets where PSA is present, including China and South America.