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In addition to existing air and oil-cooled engine series, DEUTZ is introducing two new series of water-cooled engines. The FM 1012 series has a displacement of 0.8 liters per cylinder, the FM 1013 engine 1.2 liter/cyl. There are four and six cylinder models in each series with turbocharged and charge-air-cooled versions. Also available is a four cylinder, naturally aspirated FM 1012 engine. Among other technical innovations, these engines feature the flexibility of integrated or external cooling systems, individual injection pumps and three levels of governing. The new design concept results in a compact powerplant with excellent fuel economy, clean exhaust gases and very low noise emissions. This paper highlights some design features and presents the exhaust and noise emission characteristics of these engines.