For many years, American car buyers adhered to the popular slogan “there’s no replacement for displacement”, but consumer habits are changing and the auto industry is slowly moving away from large and thirsty engines to smaller but equally powerful turbocharged powerplants.

The upcoming 2013 Cadillac ATS, with which General Motors wants to compete directly with the German competition in the premium compact sedan segment, will be one of the latest American models to make use of smaller displacement engines.

We already knew that the ATS will be offered with a four-cylinder engine, but the folks at GM Inside News are reporting that the Detroit maker is developing a brand new turbocharged unit that will not be based on the 2.0-liter turbocharged mill found in the Opel Insignia-sourced, Buick Regal GS.

Citing an unnamed inside source familiar with the engine development, GMI said that the new 2.0-liter turbo unit will produce somewhere around 270HP-280HP adding that it will gradually replace V6 units in all mid-size GM models.

Story References: GM Inside News

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