BREAKTHROUGH diesel technology is expected to pave the way for substantial future growth for Peugeot and Citroen in the UK fleet market. PSA group chairman Jean-Martin Folz predicted a significant expansion in demand for both brands as a power unit described as the most environmentally-friendly ever built was unveiled in Paris.

'We are confident businesses of all sizes will soon come to appreciate it is now possible to buy reliable cars which are both economic to operate and kind to their surroundings,' Folz said. 'The advantages of the world's cleanest diesel engine will be particularly beneficial in Britain, where carbon dioxide emissions are set to be a decisive factor in vehicle duty.'

More importantly for the fleet market, from April 2002 company car tax will be based on a percentage of a car's list price determined by its CO2 emissions. This has put Peugeot and Citroen in bullish mode, given their strong diesel heritage. 'PSA has solved a problem in such a way that everybody wins - our range of next-generation diesel cars will be good for the image of every company, and we are expecting a higher market share to be the result,' said Folz.

The new system cuts particle emissions to 0.004 grammes per kilometre - as little as it is possible to measure. PSA's direct injection HDi unit reduces CO2 by 20%, carbon monoxide (CO) by 40%, unburned hydrocarbons (HC) by 50% and particles by 60%. 'Now we are taking innovation one step further and will satisfy a true market expectation. The quality of the air we breathe is a major concern. Here we have the definitive solution to this concern - our filter system is the complete answer with regard to atmospheric pollution,' said Folz.