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Thanks to its smaller displacement and aluminum alloy block, the new powerplant is a whopping 120 kg (265 lbs) lighter than the 2.0-liter diesel it replaces, without sacrificing performance. In fact, with 115HP and 270 Nm (199 lb-ft) of torque, the turbocharged four-pot produces +5HP, while using 14.8% less fuel in the combined cycle (5.2 lt/100 km or 45 US mpg) and emitting 13.2 percent less CO2 (138 g/km).

The new engine is also Euro5 compliant. It does this by using a low compression ratio (16:1) and an efficient exhaust gas recirculation (EGR) cooler and bypass system. Other features of the MZ-CD 1.6 unit are the piezo injectors, variable-geometry turbocharger and maintenance-free diesel particulate filter (DPF) system.