VIENNA – Audi Hungaria Motor Kft., the Audi AG engine and car plant in Gyor, Hungary, will launch volume production of the new 1.6L common rail diesel 4-cyl. in early July.

“The new powerplant will be replacing the pump-nozzle injection engines over the midterm,” says Audi Hungaria Chairman Thomas Faustmann.

The new engine has an output rating starting at 105 hp.

Following lower production volumes in the last few months as a result of the economic crisis, the Hungarian Audi plant now reports an increased demand for engines, particularly for smaller ones.

“We have more or less managed to stop the downward trend,” Faustmann says. “There is a lot going on in Germany due to the car-scrapping scheme, and we are even heading for bottlenecks again in the area of certain engines.”

In related news, the Gyor plant launched serial production of the Audi TT RS. The car is powered by a 2.5L 5-cyl. turbocharged engine delivering 340 hp.

The TT RS could account for up to 10% of total TT production, Faustmann says.