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Today turbo-diesel powertrains offering low fuel consumption and good low-end torque comprise a significant fraction of the light-duty vehicle market in Europe. Global CO₂ regulation and customer fuel prices are expected to continue providing pressure for powertrain fuel efficiency. However, regulated emissions for NO and particulate matter have the potential to further expand the incremental cost of diesel powertrain applications. Vehicle segments with the most cost sensitivity like compacts under 1400 kg weight look for alternatives to meet the CO₂ challenge but maintain an attractive customer offering. In this paper the concepts of downsizing and downspeeding gasoline engines are explored while meeting performance needs through increased BMEP to maintain good driveability and vehicle launch dynamics. A critical enabler for the solution is adoption of gasoline direct injection (GDi) fuel systems.