France's PSA Peugeot Citroen and China's Changan Automotive Group said Thursday they had signed an initial agreement to set up a joint venture to produce vehicles in the world's top auto market.

Peugeot and Changan have signed a letter of intent for the 50-50 venture to make light commercial vehicles and passenger cars, the companies said in a joint statement.

"The new joint venture will be complimentary to the companies' existing joint ventures," the statement said.

Peugeot already has a joint venture with China's Dongfeng Motor Group but intends to further increase its presence in the country.

It announced in January that it aimed to increase sales in China by 30 percent this year, double the growth rate for the country's entire market.

Japan's Mitsubishi Motors and France's Peugeot Citroen Wednesday scrapped an ambitious capital tie-up that would have created the world's sixth-largest auto alliance, after reports of financial discord.

The companies in December confirmed they had discussed strengthening ties and a possible financial alliance after media in Japan reported Peugeot was planning to buy a 30 to 50 percent stake in the debt-laden Japanese maker.

But on Wednesday they said a tie-up "was not appropriate in the current circumstances", a day after PSA Peugeot chief Philippe Varin and Mitsubishi Motors president Osamu Masuko met at the Geneva Motor Show.

When the talks were announced in December, analysts said such a deal would give Peugeot access to Mitsubishi's advanced electric car systems and open the Japanese firm's sales networks in Asian markets and the United States.

However, in January the French business newspaper Les Echos reported that discussions were stuck on disagreement over the valuation of the two groups because Mitsubishi carried a higher stock market valuation than PSA.

Despite the breakdown, Peugeot and Mitsubishi, maker of the i-MiEV electric city car, pledged to "broaden the current successful cooperation of the two companies", a joint statement said.

Both companies have already agreed on other forms of cooperation and plan to launch the i-MiEV under the Peugeot brand in Europe this year.

They are also building a joint sports utility vehicle plant in Russia.

"We will continue working with Peugeot on the new Russian factory, which we are jointly constructing," said Mitsubishi spokesman Shigeru Jibiki.

"We plan to start full production there in 2012, when Peugeot will kick off its output in April and Mitsubishi in October."

Mamoru Kato, an auto analyst at Tokai Tokyo Research Centre, said a capital alliance between the car makers is still possible in future.

"The statement only ruled out a capital alliance at this time," Kato said.

"It's just not the right timing as the end-March accounting book closing approaches for Mitsubishi Motors, which needs to have specific figures for negotiations," he told AFP.

"With global tie-ups and mergers going on in the auto industry, the two companies' policy of joining hands firmly will remain intact," Kato said, adding both need to seek higher sales volumes.

Japan's fourth-biggest automaker Mitsubishi Motors last month announced a net loss of 25.7 billion yen for the nine months to December, hit by the economic downturn and a stronger yen.

For the full financial year, Mitsubishi Motors kept unchanged its forecasts for a net profit of five billion yen.

Another industry analyst who asked not to be named said Peugeot would hardly benefit from a capital tie-up with the Japanese company.

"It's a debt-ridden company with market capitalisation of 700 billion yen (7.9 billion dollars)," he said of the Japanese company.

"PSA Peugeot would need to get a decent equity stake if it wants to have control over Mitsubishi's management," he said. "It would be a very high-priced but risky purchase."

The analyst called the failure to agree a tie-up now "a blow to Mitsubishi Motors. Some companies within the Mitsubishi group, such as a trading house and banking units, also want to sell their shares in Mitsubishi Motors."

"The only bright thing in Mitsubishi Motors is electric vehicles, but it does not have enough money to spend on the new technology ... Mitsubishi Motors need a partner who has a larger sales network to spread its electric vehicles."

The French auto group PSA Peugeot Citroen said Monday it would recall 97,000 Peugeot 107s and Citroen C1s made in a Czech factory it shares with Japanese automaker Toyota.

The move comes after the Japanese auto giant on Friday pulled millions of cars around the world due to faulty accelerator pedals.

In a statement PSA said the recall concerned cars "made in a factory shared" with Toyota in the Czech Republic and concerned "models constructed jointly" with the Japanese firm.

It said the recall was a precautionary measure and affected European car owners who would be informed of the problem by mail.

"The biggest sales (of the cars concerned) in the largest countries," a PSA spokesman told AFP Monday, naming Germany, Britain, Italy and Spain.

In France, some 15,400 vehicles are affected by the recall, he added.

Both models are produced in the TPCA (Toyota Peugeot Citroen Automobile) plant, a joint venture which assembles around 200,000 Peugeot and Citroen cars every year alongside Toyota Aygo vehicles.

The compact models are exclusively produced in the plant in Kolin, 60 kilometres (35 miles) east of Prague and are chiefly destined for European markets, the PSA spokesman said.

Developed by Toyota, the Peugeot 107, the Citroen C1 and the Aygo are essentially the same car with styling and fitment difference.

PSA has no other joint ventures with Toyota.

Toyota pulled up to 1.8 million vehicles in Europe on Friday -- the latest in a series of recalls that have affected almost eight million Toyota cars worldwide -- more than its entire 2009 global sales of 7.8 million vehicles.

Toyota, which overtook General Motors in 2008 as the top-selling automaker, has been bedevilled by a series of safety issues that have raised questions about whether it sacrificed its legendary quality to become world number one.

French automaker PSA Peugeot Citroen said on Tuesday that its worldwide sales of automobiles and parts grew by 1.8 percent in 2007 from the figure the previous year.

The number of vehicles sold rose by 3.8 percent to 3.233 million units, but sales of spare parts fell by 22.5 percent.

The company said it expected an increase in global sales of "about 5.0" percent to between 3.55 and 3.65 million units in 2008.

Peugeot shares were showing a 2.21 percent gain at 47.73 euros on an overall Paris market that was 0.83 percent stronger.

"In a difficult business environment, after several years of declining market share, the group's position is stable at 13.8 percent of the (global) market," the company said.

It said Peugeot was the second leading maker of passenger cars in Europe and the leading supplier of light utility vehicles.

In France Peugeot is top performer, controlling 30.9 percent of the automobile market, with 779,800 vehicles sold in 2007, an increase of 1.9 percent.

International vehicle sales rose 11.1 percent in 2007, reflecting gains in eastern Europe, China and Latin America, Peugeot said.

Peugeot will recall worldwide around 240,000 of its 307 hatchback built between 2003 and 2006.

Of the 2 million cars sold, 60 percent were affected, Peugeot confirmed today to Automotive News Europe sister company Automobilwoche.

Peugeot said the recall was due to insufficient sealing of the antilock brakes and ESP steering system. This could lead to a short circuit.

The recall is planned to start in Germany in mid-September, where Peugeot will have to check 80,000 vehicles.

The 207 RC will be launched at the beginning of the spring and will write the next chapter in Peugeot's history of small performance cars, such as the 205 GTi of the 1980s and, more recently, the 206 RC. Both of these cars especially delighted enthusiasts with their pure driving enjoyment and provoked much jealousy from drivers of less sporty versions.



The 207 RC is the modern evolution of a compact vehicle with a strong sporting temperament. The sophisticated technology fitted to the car is a result of Peugeot's expertise in building this type of vehicle. It is a very multitalented car which is easy to live with on a day-to-day basis, whilst still able to provide a driving experience to satisfy the "enthusiast in everyone".





The 207 RC combines





The elegant and strong styling characteristics of the 207 3-door "Sport" model... enhanced by an improved specification with a hint of luxury. This combination creates a sporting look that enthusiasts will relish;



The strong and assertive personality of the 207... and a turbocharged petrol engine with direct petrol injection and a maximum power output of 128 kW ( 175 bhp) and a torque of 240 Nm - developed in co-operation with the BMW Group. With its high torque output, this engine offers a very high level of performance underlined by a very sporty exhaust note;



The universally praised handling qualities of the 207 range... are combined with the latest safety equipment which has been selected and developed by Peugeot using all its knowledge in this field. The result is excellent road holding and a level of active safety never before achieved in this market segment, enabling any driver to enjoy driving the 207 RC to the full;



A passenger compartment which is welcoming, ergonomically designed and fully equipped for motoring enthusiasts. Its sporty character can be enjoyed on a daily basis, but for a taste of competitive driving, just fit a safety harness etc... and head for the nearest racing circuit ....



While the raison d'être of the 207 RC is to appeal to individuals who are passionate about driving, the car's standard specification will be left to the discretion of the different markets. Therefore, the 207 RC can appeal to "performance purists" with a version focused mainly on the technology package and its necessary equipment.



207 RC



Genuine performance car looks





The 207 RC has the same length of 4.037 m as the 207 Sport hatchback, the same dynamic 3-door body shape with its expressive look at the front, combined with a wider front and rear track and wheel arches inspired by the 206 WRC and the world of motor sport.



Its styling is based on strong but subtly recognisable traits – performance-enhancing features and exclusive finishing touches – all symbols of its personality.



Ready to put to the test, the Bridgestone Potenza 205/45R17W tyres mounted on new 17" nine-spoke "Pitlane" wheels, a rear spoiler to optimise aerodynamic efficiency at high speed and a trapezoid twin chrome exhaust, all confirm the 207 RC's sporty character.





Its efficient design and look confirm its purpose, thanks to the dark "black chrome" masking of the feline shaped headlamps.



The choice of exterior colours for the 207 RC captures the performance car feel perfectly with existing colours including: Bianca White, Flamenco Red, Obsidien Black, Metallic Grey, Aegean Blue and a new pearlescent anthracite colour - Shark Grey - which particularly reflects the car's temperament.



This new colour is reserved for the RC only, as is the dark tinted rear windscreen and rear windows, the bright finish of the door B-post trims and the hi-tech satin chrome door mirror covers.





The heart of an "athlete" ... power on demand





The 1.6 litre THP (Turbo High Pressure) engine produces a maximum power of 128 kW (175 bhp) and a torque of 240 Nm from only 1600 rpm. The torque output of the engine remains unchanged all the way up to 4500 rpm but can be increased to 260 Nm temporarily, thanks to the "over-boost" function. It is fitted with a 5-speed manual gearbox with specific gear ratios.



This engine is characterised by its high power output and maximum torque produced at very low engine speeds, offering exceptional acceleration while maintaining constant speed fuel consumption at a reasonable level.





With the driver only in the car, performance figures are as follows:



Maximum speed: 220 km/h



1000 m standing start: 27.8 s



0 – 100 km/h: 7.1 s



In gear acceleration (5th): 7.0 s 80 – 120 km/h



While combined fuel consumption is 7.2 litres/100 km (171 g of CO2/km)





To achieve both excellent performance and low fuel consumption the engine includes a number of innovative features, such as:



Direct, high-pressure petrol injection, allowing a high power output and also low fuel consumption and low emissions. The system consists of a high-pressure injection pump supplying individual fuel injectors that inject fuel directly into the combustion chamber at a maximum pressure of 120 bar.



An "over-boost" system, enabling the torque output to be increased temporarily from 240 Nm to 260 Nm in the top three gears.



A Twin-Scroll turbocharger, which first appeared on the THP 150 bhp engine, which combines the exhaust gases flowing from two individual cylinders in the exhaust manifold before they enter the turbocharger compressor. The combined flow of the exhaust gasses is directed through "Scrolls" in the turbocharger turbine housing increasing the force applied to "rotate" the turbine. The direct result is a reduction in the turbocharger response time (turbo lag). The turbocharger compressor of this new and extremely efficient engine is made of steel due to the high operating temperatures.



Continuously variable timing of the inlet camshaft (Variable Valve Timing (VVT)) and the use of roller cam followers, help to reduce internal friction and increase power and torque while also reducing fuel consumption and emissions.



The controlled output oil pump supplies only the exact volume of oil required by the engine and eliminates unnecessary engine power consumption and the detrimental effect on fuel consumption.





Trained muscles





The excellent road holding of the 207 RC is a result of the strong structural design of the 207 and its proven suspension setup, developed to enhance both safety and driving pleasure.



Strengthened McPherson type front struts and front ball joints, a stiffer rear torsion beam, changes to the stiffness of the front and rear springs and damper settings, electric power steering calibrated according to the new performance levels, and larger ventilated front disc brakes (302 x 26 mm), distinguish the 207 RC from the rest of the range. A car with performance in its genes, the 207 RC is equipped as standard with the latest-generation ESP system which can be switched off fully, thereby disconnecting the traction control, yaw control and emergency braking assistance functions. This will, therefore, allow more demanding and experienced drivers to appreciate the exceptional handling of the 207 RC, particularly on a racing circuit.





A new innovation: the SSP function (Steering Stability Program)



This function manages the dialogue between the ESP system functions and the vehicle's electric power steering when braking on surfaces that have different grip levels for the right-hand and left-hand wheels.



The system applies more braking power to the wheels with good grip and, anticipating any vehicle instability, applies torque to the steering to help the driver achieve optimal directional control. Unlike an ABS system which limits braking of the wheels with good grip to give priority to vehicle control, this system reduces braking distances by around 4 % while still guaranteeing vehicle stability in a straight line.





A passenger compartment for enthusiasts passionate about motor sport... and others





A sporty interior...



Firmly anchored in the world of motor sport, the passenger compartment of the 207 RC accommodates each of its four potential occupants in "bucket" style seats that provide excellent support. The sculpted and ergonomically designed front seats have been based on those used in motor sport and trimmed in dark "alcantara" with a matching 3D mesh. Their visual appeal is enhanced by visible light-coloured stitching which matches that of the passenger compartment "alcantara" trimmed door panels, carpets, and the gear lever gaiter.



The very stylish "furnishings" of the 207 RC interior are combined with:



An instrument panel which is similar to that usually found on a motor bike, with its circular chrome-trimmed dials, checked graphics, rounded typography and red needles.



The smooth, perforated, leather steering wheel has moulded thumb grips and is further enhanced by a ring with an "Indy" decoration – an exclusive, soft-to-the-touch material is used on the air vent controls and centre console of the 207 RC. Aluminium pedals with non-slip pads finish of the driver's footwell area.



... To be enjoyed in complete safety...



The 207 RC benefits from the 207's strong and protective structure that incorporates a number of innovative solutions to protect the occupants in the event of a front impact, such as the double impact absorption bars and the door retention pins for side impact. Combined with six air bags and two Isofix child safety seat mountings at the rear, the 207 was awarded five stars in the EuroNCAP test for adult occupants, four stars for child occupant protection and three stars in the test to assess the protection offered to pedestrians involved in a collision with the vehicle.



... not forgetting equipment for comfort and convenience...



Occupants of the 207 RC will appreciate the automatic dual-zone air conditioning and comfort equipment (standard or optional according to destination) such as the MP3 compatible CD / radio, the JBL Hi-fi system, or the Peugeot RT3 telematics system with RDS radio, GPS satellite navigation and GSM telephone with 7'' 16/9 colour display. In addition, drivers of the 207 RC will also benefit from a number of driving aids and safety systems, including as standard.



A rear parking aid, elliptical headlamps incorporating static directional lighting, a speed limiter coupled with a cruise control, headlamps which automatically switch on or automatic windscreen wipers with a rain sensor, tyre under-inflation sensors, folding electric door mirrors and an electro-chrome interior rear-view mirror

In 1998, the concept-car 20. was presented for the fi rst time. The enthusiasm

it aroused among the public fuelled the development of a new mass-produced car

design: the Coupe / Cabriolet.



Combining vision and realism, the 206 CC - the fi rst vehicle in the small car segment

to have a metal electric folding roof - met with well-documented success and was then

followed in the higher segment of the Peugeot range by the 307 CC.

With the launch of the 207 hatchback, Peugeot