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PSA Retools Diesel Hybrid Strategy to Focus on Higher-End Cars

French financial newspaper Les Échos reports that PSA Peugeot Citröen is altering its hybrid vehicle strategy to focus on higher-end, premium vehicles, rather than on a more mass-market solution, with lower production volumes expected. The market introduction will also be delayed.

PSA was working with Continental, Bosch, Valeo and Thyssen-Krupp on a hybrid diesel platform that would have likely been applied in the Peugeot 308 (earlier post) and entered the market in 2010.

The €471 million (US$690 million) project was to receive €101 million (US$148 million) in public funding from the French government via the Agency for Industrial Innovation (l’Agence de l’Innovation industrielle, A2I).

The European Commission has raised competitive concerns over the government subsidy, and has blocked progress for some 18 months, according to PSA. As a result, PSA says that it has decided to develop hybrids itself, to begin sales in 2011, and to target the more expensive vehicles, according to the report.



OK, PSA Peugeot Citroen, Where is my new Citroen here in the USA? My 1986 Citroen CX wagon is getting a bit tired and worn out after all these years. And I just retired my 1971 DS wagon to be a parts car.
If you don't get here to the USA soon I'll have to buy a Honda! Don't make me do that!
And yes, I'm quite interested in a diesel/electric hybrid.


They finally figured out that it does not make any economical sense to put that technology in a car that already is running quite economical on diesel alone. The marginal cost of a diesel hybrid are far higher than the marginal benefits. The balance comes indeed in the higher price brackets. Economics 101!


The PNGV cars were diesel hybrids and they said that they were too expensive to market. That very well could be the case. It is one thing to make a more efficient car and another to get people to buy them in large numbers at a given price point.

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