>VOLKSWAGEN announces 1.2 litre three-cylinder TDI diesel engine

VOLKSWAGEN has revealed its new 1.2 litre three-cylinder TDI diesel engine, based on the direct-injected architecture of its larger 1.6 litre and 2.0 litre engines.

Set to power the Polo BlueMotion, the 1.2 TDI produces 55kW and 180Nm of torque - only just shy of the four-cylinder Ford Fiesta ECOnetic's 66kW and 200Nm of torque.

The new engine is still undergoing fuel consumption tests, but Volkswagen expects the small diesel to be rated at around 3.2 l/100km. CO2 emissions are expected to listed as 87g/km.

Without an automatic transmission available in the BlueMotion line-up, the Polo BlueMotion is unlikely to see an Australian debut - despite the BlueMotion range being named 2010 World Green Car of the Year last month.

“We are eager to get the BlueMotion range onto Australian roads, but it won’t happen until the technology can be offered with Volkswagen’s DSG transmission," Volkswagen Australia's Karl Gehling told TMR last year.

The regular Polo line-up, recently awarded a 5-Star ANCAP crash safety rating, is scheduled for a local debut this month. The range-topping 2011 Polo GTI will join the Australian range later in the year.