Volkswagen is adding its new turbo-charged, direct-injected turbo four into the 2016 Jetta to improve fuel economy with a smaller package, the automaker has announced.

The EA211 TSI engine will replace the 2.0-liter engine in the S model and the 1.8T TSI engine in the SE model. 

The new 1.4-liter engine features lightweight aluminum construction, an integrated exhaust manifold into the head, and a toothed-belt drive for its double overhead camshaft valvetrain that incorporates variable intake and exhaust timing.

The engine will be mated to either a five-speed manual or a six-speed automatic transmission and should deliver highway fuel economy of 39 mpg with the six-speed automatic for a 13-percent improvement over the previous 2.0-liter engine and a 7-percent gain over the 1.8T.

The only aspect Volkswagen will carry over from the earlier EA111 engine is the 82 mm cylinder spacing. The cylinder bore was decreased by 2 mm to 74.5mm while the stroke was increased to 80mm, a change which not only helps compactness, but also increases torque and presents an ideal canvas for adding boost.

The 1.4T engine in the Jetta features a 10.0:1 compression ratio, direct fuel injection, and turbocharging to produce 150 hp at 5000 rpm.