It’s the end of the line for Volkswagen’s venerable 2.5-liter five-cylinder gasoline engine in the States as the German carmaker announced today that it will gradually replace it with a new 1.8-liter turbocharged and direct-injection four-cylinder TSI on the Jetta, Beetle, and Passat models.

Built in a new VW factory in Silao, Mexico, the EA888-codenamed 1.8-liter unit delivers the same output as the 2.5L unit at 170hp, but peak torque is improved by seven lb-ft at 184 lb-ft and is delivered much lower in the rev range, while the Germans say that is also offers significant fuel mileage gains – up to 17 percent on the highway in the Beetle, for example.

Initially, the new 1.8-liter TSI will be fitted to the 2014MY Jetta range and the Passat SEL, and will be followed by the rest of the Passat lineup and the Beetle later in the model year.

Other notable changes for VW’s 2014 model year lineup include the launch of the limited production and retro-themed Beetle GSR, the expansion of the R-Line range to include the Beetle Convertible, Touareg, and Tiguan from this fall, while all VW models are now E15 capable.

Also new for 2014 is the VW Car-Net connected services for Beetle, Beetle Convertible, CC, Eos, Jetta, Passat, and Tiguan models, which includes crash notification, roadside assistance, stolen vehicle location assistance, remote vehicle access, boundary and speed alerts, a vehicle health report, and a POI service on vehicles equipped with a navigation system.

VW added that for the 2014MY, the Routan carries over without changes as a fleet model only.

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