May supply `global car` to Peugeot: Mitsubishi

Japan's Mitsubishi Motors Corp said on Friday it may supply a new small car to France's PSA Peugeot Citroen as the two carmakers discuss forming closer ties.

Mitsubishi and PSA said in December they had begun talks to form a strategic partnership to build on their existing project-based ties such as SUVs and electric cars. Mitsubishi has said this partnership could include capital ties.

Mitsubishi is planning to introduce a new model called "global small car" in 2011 with a price tag of 1 million yen ($11,150) or less -- part of a broader strategy to focus on more fuel-efficient vehicles.

The Asahi newspaper reported that Mitsubishi planned to sound out PSA Peugeot about supplying it with the car, citing an interview with Mitsubishi president Osamu Masuko.

Mitsubishi Motors spokesman Tetsuji Inoue said Peugeot could be among the carmakers it would consider for such a supply deal but nothing had been decided.