DIESEL engines are expected to account for half of all cars sold across Europe by 2006.

The prediction, from a high ranking Ford Europe executive, comes as the manufacturer announced a development programme with PSA Peugeot Citroen.

The manufacturer's product development vice-president Derrick Kuzak said: 'Diesel sales are rising each month and now account for 60% of the cars sold in France, 50% in Italy and 40% in Germany. By 2006, half of the cars sold across Europe will be diesel, compared with 17% 10 years ago.'