In an effort to curb levels of carbon-dioxide emitted by its cars, Ford is currently developing a new generation of small capacity engines. Its European lineup already has some of the lowest levels of CO2 emissions in the region but engineers at its engine plant in Cologne are developing a new, ultra-clean low-displacement engine range. The information comes from Ford product development exec Jens Ludmann who spoke recently with Automotive News.

Ford is fighting the greenhouse battle on two fronts. It will offer both ethanol fueled vehicles as well as the new range of smaller engines. According to inside sources, the first of these new highly-efficient motors will be a turbocharged 1.6L gasoline unit that will replace the aging 2.3L Duratec motor. In about a year’s time, Ford will also launch ethanol variants that it will use to compete with Volkswagen and Opel's diesel range. The most likely models to receive the new engines will be Ford’s new Mondeo and its Galaxy and S-max cousins.

By the middle of the year, Ford will also release a newly developed six-speed automatic transmission, which will cost an extra €2,000 and is also expected to appear in some Mazda models. In 2008, expect to see a new dual-clutch manual gearbox sourced from Getrag that Ford will use company-wide.