Paris - French car maker PSA Peugeot-Citroen has announced that it is planning to build a new low-emission engine that will "significantly" reduce fuel consumption.

The three-litre power unit in the range of between 51 kW/70 hp and 74 kW/100 hp will emit less than 100 grammes of carbon dioxide per kilometre, according to the car maker.

It is still unclear what vehicles the engine will be used. Two manufacturing sites will be established, one in France, the other in eastern Europe. (dpa)