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This paper introduces the new 1.6L engine family, designed and developed by the Chrysler group of DaimlerChrysler Corporation in cooperation with BMW. An overview of the engine's design features is provided, with a detailed review of the performance development process with emphasis on airflow, combustion, thermal management and friction. This information is presented, to provide an understanding of how the engine simultaneously achieves outstanding levels of torque, power, fuel consumption, emissions and idle stability. The use of analytical tools such as Computational Fluid Dynamics (CFD) and Finite Element Analysis (FEA) in the optimization of the engine is shown.