New Ford engine goes small

DEARBORN, Mich.—Ford Motor Co. will introduce its smallest engine ever by 2013 as part of an industry-wide race to better fuel economy.

Ford says it's working on a one-litre, three-cylinder engine for small cars. The company has not revealed which cars will get the new engine, but it will be used globally.

The engine is based on Ford's EcoBoost technology, which uses turbocharging, direct injection and other technologies to boost performance. The three-cylinder will have the same power as a four-cylinder but will be more fuel-efficient.

Three-cylinder engines are common in Europe and Asia, but the only one currently available in the U.S. in the Smart Fortwo.

The Fortwo has a 70-horsepower engine‑‑the same as some snowmobiles‑‑and gets 41 miles per gallon on the highway.

In other Ford news, reports suggest Mazda Motor Corp. plans to end its 50-50 joint-venture with the Dearborn, Mich. automaker.

Mazda and Ford operate the AutoAlliance International plant in Michigan as a 50-50 partnership. According to unnamed company sources, Mazda is considering selling its stake to Ford as the Japanese automaker restructures its global production, according to the Nikkei, the stock price index for the Tokyo Stock Exchange. .

Mazda cars sold in the U.S. will be shipped from Japan and Mexico starting in 2013. The plant in Flat Rock, Mich. manufactures the Mazda6 midsize sedan and the Ford Mustang, Ford said. It employs about 1,700 workers.