The trend of engine downsizing continues! PSA Peugeot Citroen is developing a new 1.2 litre inline-3 turbocharged engine to slot into its compact cars and will be investing 175 million Euros over the next 2 years in preparing to build the engine at its Douvrin plant in northern France beginning 2012.

The new 3-pot engine will also have 1.0 and 1.2 litre normally aspirated variants. The turbo 1.2 can probably be used to replace the 1.6 litre normally aspirated Prince engine used in the 308 VTi, while the more powerful 308 Turbo can continue using the PSA Prince engine’s successor. The Douvrin engine plant is a JV with Renault. Not to be confused with the Douvrin engine, which was a shared 2.0 and 2.2 litre engine used by Renault and Nissan in the 70s.