Takashi Nishioka, Chairman of Mitsubishi Motors Corporation and Jean-Martin Folz, CEO of PSA Peugeot Citroën, have signed the final cooperation agreement between their two companies concerning all-new four wheel drive vehicles.

The agreement plans the annual production in Japan of 30,000 units for PSA Peugeot Citroën's needs, based on a Mitsubishi Motors' platform currently under development.

To be launched in Europe in 2007, the new high-end 4WDs will be well equipped, with top-of-the-range comfort, handling and safety features. The Peugeot and Citroën models will be powered by Mitsubishi Motors' newly developed petrol engines with aluminium cylinder blocks and by PSA Peugeot Citroën's latest-generation HDi diesel engines equipped with particulate filters. These fuel-efficient, low-emission diesels will deliver remarkable environmental performance.

In Japan, the Mitsubishi-branded model will be launched in the (northern) autumn this year. In Europe, the models of the three brands Peugeot, Citroën and Mitsubishi (European version) will be unveiled at the 2007 Geneva Motor Show, with a possible Australian launch for the Citroen and Peugeot versions at the 2007 Sydney Motor Show and an on sale date in late 2007.

Designed with specific styles for Peugeot and Citroën, the new 4WDs will broaden the Peugeot and Citroën product ranges and will enable the two brands to reach new customers by entering an expanding market segment. This project will be targetted at European markets and countries where European style cars are on sale.

For Mitsubishi Motors, the additional volume for PSA Peugeot Citroën will enable the company to raise capacity utilisation rates and to improve productivity. The company expects that this agreement would help accelerate the efforts to achieve the targets mapped out in the Mitsubishi Motors Revitalisation Plan.

With this cooperation, Mitsubishi Motors and PSA Peugeot Citroën are pursuing a 'win-win' strategy between collaborative partners.