THE RENAULT PASSENGER CAR DIVISION has just unveiled a new version of its popular R20 family sedan, fitted with an all new 2 liter Diesel engine. This new 4 cylinder in line Diesel engine was designed and developped with reliability, lightweight and compactness, low noise level and high torque as major targets. It features an aluminium crank-case, a new type of cylinder liners, an aluminium cylinder head with an overhead camshaft driven by a toothed belt, a new type of swirl chamber, a nodular cast iron crankshaft. For the passenger car version, power output is 49 kW (DIN) at 4500 RPM (without fan) and torque is 127 Nm (94 lbft) at 2250 RPM. The complete engine weighs 160 kg (350 lbs). Its dimensions remain very close to those of our compact 2 liter gas-engine. This new Diesel engine will power various passenger cars and light-duty vans in the near future.This paper describes the main design, development and performance features of this new engine, as well as some special manufacturing means which were developped for the Renault 2 liter Diesel.