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The arguments are given for the use of a 1.3 litre turbocharged spark ignition engine as a substitute for a 2 litre normally aspirated engine for late-80's compact cars. Descriptions of the three stages leading to an optimised engine-turbocharger package are described, together with details of the prototype TC engine manufacture and testing including supercharger tests to define operating limits. An outline of the optimising computer program is given, together with examples of computed camshaft designs giving significantly improved performance at low engine speeds. Some experimental results are given, including those of in-car testing which showed fuel consumption reductions of 12-22% over urban driving cycles.