DPCA, the joint venture of Dongfeng Motor and PSA Peugeot Citroen, broke ground today on the new PSA petrol engine project in Xiangyang (used to be called Xiangfan), Hubei. 2.9 billion Yuan ($442 million) will be spent on building new workshops and upgrading existing ones for producing the EC, EP, EB families of fuel-efficient, Euro V engines. The Xiangyang powertrain factory is expected to be able to churn out 1.2 million engines and 540,000 gearboxes a year by 2015 when the project is to be completed.

DPCA made 420,000 engines and 280,000 transmissions last year, while having an annual production capacity of 640,000 engines and 375,000 transmissions in Xiangyang. The new engine project is part of the joint venture’s "5A" plan, its growth blueprint for the next five years announced last September, according to which 12 new Citroen and Peugeot models will be launched and sales of DPCA will double from last year’s 370,000 units to over 750,000 in 2015.

A total of 6 new PSA engines will be introduced. First to roll off line, in 2012, will the naturally aspirated, VVT 1.6-liter EC5 and 1.8-liter EC8, developed from the TU series. They will be joined in 2013 by the award-wining EP models featuring direct injection and turbo charger, which are developed with BMW. The 1.2-liter, three-cylinder EB engines will come in 2014 in both turbo-charged and naturally aspirated versions.

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