Peugeot Citroen has denied rumors they were working with Mitsubishi Motors to develop hybrid cars.

"We deny the information. We are working well with Mitsubishi on electric vehicles," a PSA Peugeot Citroen spokesman told Reuters. He added "we have our own research into plug-in hybrids."

Peugeot has been working with Bosch to build a hybrid diesel and is expected sometime in 2011.

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