Audi has developed a new 1.8-liter turbo FSI direct inject engine to become the new base engine for its A3 compact in Europe. The new motor is likely a downsized version of the brand's 2.0 TFSI engine and produces around 160 horsepower and 185 ft-lbs. of torque. It will be able to propel the A3 to 62 mph in 8.2 seconds.
Since the 2.0 TFSI has become increasingly more powerful and can now be had in versions producing upwards of 240 horsepower in cars like the new Seat Leon Cupra, some are predicting this new 1.8-liter TFSI will become the new base engine du jour across the brand's entire lineup. In addition to its use in the A3, Audi has already confirmed it will be offered with the new TT coupe, as well.

[Source: Autoweek.nl via eurocarblog]

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