It seems as though engine downsizing is the catch phrase of the last few years. Take an engine, shrink it and drop a turbo in and ba da bing, you've got a more efficient and sometimes even more powerful solution. Even though engine downsizing is popular, few have ventured as far as FEV Inc. With this new engine (pictured), appropriately called the Extremely Downsized Engine, FEV explores uncharted waters, going beyond tiny four-cylinder engines.

The Extremely Downsized Engine (EDE) comes in at just 0.7 liters of displacement from its three-cylinder turbocharged design. FEV claims that the EDE powerplant, complete with direct-injection, can return 12 percent better fuel economy than a non-turbocharged 1.5-liter four-cylinder motor.

Fuel economy aside, the EDE has horsepower per liter numbers that few supercars can match. We're talking about 134 horsepower per liter here, jolting this engine past icons such as the Corvette LS9 powerplant at just over 100 hp/L and the 2.0-liter turbocharged Ecotec mill at 130 hp/L, but falling just shy of the current 911 turbo rated at 137 hp/L. Now that's a lot of power.

Though no release date has been set, FEV sees a market for its EDE in B- and C-segment vehicles throughout U.S. and Europe. It may take time for buyers to understand the benefits of a tiny engine, but we're confident that FEV is on the right path with this one.

[Source: Ward's Auto]