PSA Peugeot Citroën has unveiled a new Air Hybrid powertain which promises to drastically reduce fuel consumption and CO2 emissions.

PSA Peugeot Citroën has unveiled a new Air Hybrid powertain at the company's Innovation Day celebration.

Described as an "important step towards the 2 L/100km (117.6 mpg US / 141.2 mpg UK) car," the Air Hybrid system uses a petrol engine, compressed air, a hydraulic motor-pump and an automatic transmission with an epicyclic gear train. The company declined to go into specifics, but the powertrain has three operating modes: petrol only, air only and combined petrol and air.

PSA estimates that if the technology were applied to the Citroën C3 or Peugeot 208, the models would average 2.9 L/100km (81.1 mpg US / 97.4 mpg UK) and have CO2 emissions of 69 g/km. More importantly, in city driving, the cars could operate as a zero emission vehicle - in Air mode - for 60 to 80 percent of the time.

Despite sounding overly complex, PSA Peugeot Citroën has plans to offer the system on B-segment vehicles in 2016.

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