PSA Peugeot Citroen [has] unveiled a pioneering hybrid vehicle concept combining a conventional engine with compressed nitrogen propulsion which it said would halve the cost of cutting emissions compared with current gasoline-electric hybrids. The French carmaker said the so-called Hybrid Air" system developed with auto parts supplier Robert Bosch would be lighter than a hybrid running on petrol and battery power. Peugeot, which is cutting more than 10,000 jobs as it struggles to stem losses and expand overseas, said the technology would be launched around 2016, with vehicles priced below 20,000 euros ($26,600). Unlike Toyota's Prius hybrid, which supplements a conventional engine with an electric motor, the new Peugeot will use a separate hydraulic motor driven by nitrogen compressed by energy from braking and deceleration. In city driving conditions, the vehicles can travel on the compressed gas power as much as 80 percent of the time with the 3-cylinder gasoline engine cut. Peugeot said a prototype Hybrid Air subcompact emitted 72 grams of CO2 per km, compared with 104 grams for a Peugeot 208 model with the same combustion engine.