In early January, DailyTech reported that Ford will use turbocharging to improve the fuel efficiency of its vehicles. The company plans to use turbocharged "EcoBoost" four-cylinder and six-cylinder engines in everything from economy cars to luxury crossover utility vehicles (CUVs).

GM has fuel efficiency on the brain as well thanks to the latest CAFE regulations and will bring a small, 1.4 four cylinder to the U.S. market. The new turbo engine will be called the 1.4 Twinport Ecotec.

The European-market engine in its naturally-aspirated form produces 90 HP and 92 lb-ft of torque. This in turn is good for roughly 38.5 MPG combined -- for comparison, a Chevy Cobalt using a 2.2 liter four-cylinder engine only achieves 28.5 MPG combined.

Adding a turbo boosts the horsepower to 140 HP with a minimal impact on fuel economy.

"You're going to see turbocharged four-cylinders in vehicles that no one could have ever imagined that they would be in," said GM engineering chief Jim Queen.

Current candidates for the new engine include compact vehicles like the Chevy Cobalt and Saturn Astra and mid-sized vehicles like the Chevy Malibu and Saturn Aura.

GM is no stranger to turbocharged engines. The company offers a wide variety of turbocharged gasoline and diesels in Europe where fuel prices are astronomical. The company also offers a turbocharged diesel in the United States in the form of the heavy duty Duramax engine used in full-sized pickups.

GM's other turbocharged motors in the U.S. see limited duty in performance models from Pontiac and Chevy as well as GM's oft-overlooked Saab brand. The turbo Ecotec four-banger used in the Pontiac Solstice GXP and Saturn Sky Red Line produces 260 HP and 260-lb-ft of torque from just 2.0 liters of displacement.

According to GM product czar Bob Lutz, the move to bring engines to the U.S. that Europeans have enjoyed for years has more to do with CAFE than consumer demand. "Europeans, at their fuel prices, are willing to pay premium prices for premium small cars that deliver terrific fuel economy," said Lutz. "That is not the case here in America, land of the big truck, big horse and the big American."

It remains to be seen how Americans will take to the turbocharged engines which will add anywhere from $250 to $450 to the purchase price of a vehicle.