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The need for significant reduction of fuel consumption and CO₂ emissions has become the major driver for development of new vehicle powertrains today. For the medium term, the majority of new vehicles will retain an internal combustion engine (ICE) in some form. The ICE may be the sole prime mover, part of a hybrid powertrain or even a range extender; in every case potential still exists for improvement in mechanical efficiency of the engine itself, through reduction of friction and of parasitic losses for auxiliary components. A comprehensive approach to mechanical efficiency starts with an analysis of the main contributions to engine friction, based on a measurement database of a wide range of production engines. Thus the areas with the highest potential for improvement are identified. For each area, different measures for friction reduction may be applicable with differing benefits.

The world of automotive engineering shows a clear direction for upcoming development trends. Stringent fleet average fuel consumption targets and CO2 penalties as well as rising fuel prices and the consumer demand to lower operating costs increases the engineering efforts to optimize fuel economy. Passenger car engines have the benefit of higher degree of technology which can be utilized to reach the challenging targets. Variable valve timing, downsizing and turbo charging, direct gasoline injection, highly sophisticated operating strategies and even more electrification are already common technologies in the automotive industry but can not be directly carried over into a motorcycle application. The major differences like very small packaging space, higher rated speeds, higher power density in combination with lower production numbers and product costs do not allow implementation such high of degree of advanced technology into small-engine applications.

In order to achieve future CO2 targets - in particular under real driving conditions - different powertrain technologies will have to be introduced. Beside the increasing electrification of the powertrain, it will be essential to utilize the full potential of the internal combustion engine. In addition to further optimization of the combustion processes and the reduction of mechanical losses in the thermal- and energetic systems, the introduction of Variable Compression Ratio (VCR) is probably the measure with the highest potential for fuel economy improvement. VCR systems are expected to be introduced to a considerable number of next generation turbocharged Spark Ignited (SI) engines in certain vehicle classes. The basic principle of the AVL VCR system described in this paper is a 2-stage variation of the conrod length and thus the Compression Ratio (CR).