VW's new engine is smaller but quicker

• 1.6-litre replaced by 1.4-litre turbocharged unit
• New engine more economical and more powerful
• Prices rise £150-£175 to reflect change

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Volkswagen is phasing out its 1.6-litre petrol engine in favour of a 1.4-litre turbocharged petrol engine for its Golf, Golf Plus, Jetta, Eos and Passat models.

The new unit has more power and pulling power yet lower fuel consumption and carbon dioxide emissions.

For example, in the Golf the unit produces 120bhp, 7bhp more than the current 1.6-litre. It also has almost one-third more pulling power.

Fuel economy rises from 42.2mpg to 44.8mpg.

Emissions with the standard six-speed manual gearbox drop from 161g/km of carbon dioxide to 149g/km.

With the seven-speed semi-automatic gearbox, which will cost an additional £1300 when it becomes available as an option in early 2008, emissions drop to 139g/km of carbon dioxide.

The price of the Golf, Golf Plus, Jetta and Eos fitted with the new TSI engine will rise £150, while the equivalent Passat will cost an additional £175.