Citroen C3 To Be Killed Off, Brand Going Downmarket: Report

According to reports in the French news media, Citroen will drop its C3 model line in favour of a budget-oriented offering known internally  as "E3".

Widely tipped to be a productionised version of the 2007 C-Cactus concept car (above), the E3 will be pitched as a modern-day 2CV - cheap, cheerful and with an emphasis on practicality. 

French business newspaper Les Echos reports that Citroen will launch this new budget compact car in 2014, although production of the current C3 is expected to continue for three more years. 

The E3 is also expected to pave the way for a new fleet of lower-cost Citroen models, as the French brand repositions itself to capture the more affordable end of the European car market.

Partner brand Peugeot will make a corresponding move upward, taking its offerings toward the luxury end of the scale. With the two brands currently in direct competition with each other, increasing the separation between them would be a sound move for ailing parent company PSA.