French carmaker PSA Peugeot Citroen is working on two new models for emerging countries as it seeks to break out of its dependence on mature markets.
Europe's second-largest carmaker in November outlined a plan to boost profitability that included new models for 2010-2013 targeting emerging markets it wants to focus on as mature markets stagnate.
The group eventually wants an 8 percent share of the Chinese market, compared with 3.5 percent in 2009.
French paper Les Echos had reported that two new models -- an entry-level small car known internally as "global small" and a mid-sized sedan known as "M3-M4" -- were not among the models announced in November.
A PSA spokesman confirmed the group was working on two new models for emerging countries for the longer term but declined to give any details on volume targets or timescale.
The group had announced in May that it would invest around 1 billion euros at its Vigo site in Spain over five years, and said at the time it would build a "core range" model there. The spokesman confirmed Les Echos' information about the car's name and size.
"In November we presented the 2010-12 line-up... these projects are undoubtedly outside that plan," he said.
Japanese partner Mitsubishi Motor Corps is leading the development of the small car, Les Echos said, adding that it would be sold in several continents and could be produced in Japan, Thailand, India, Latin America or China. Its launch date is yet to be determined, Les Echos said.
The PSA spokesman confirmed PSA and Mitsubishi were discussing the development of the new small car.
The two groups failed to agree on an expanded partnership in March, which was set to include a capital exchange, but said at the time they were discussing working together on more projects, and the small car is part of those talks.
