Mitsubishi Motors Corp. will receive diesel engines from PSA Peugeot-Citroen under a new supply pact, the automakers announced Wednesday.

France-based Peugeot-Citroen will start supplying its 2.21 common-rail direct injection diesel engine to MMC from mid-2007, the companies said in a joint statement.

MMC, which plans to launch its new Outlander SUV model in Europe this month, will roll out a version equipped with the Peugeot-Citroen diesel engine toward the end of the year, the statement says.

The two makers already have a working relationship, teaming up on four-wheel-drive SUVs for Peugeot-Citroen based on an MMC platform in July 2005.