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The hi-tech 105bhp engine, which debuts in the new Yeti, will feature in Skoda, Audi, Volkswagen and Seat vehicles.
The all-new engine has come a long way from the flame-ignition motorcycle unit produced by company founders Laurin and Klement in 1899.
It features both direct fuel injection and turbocharging technology to maximise the low CO2 emissions and fuel consumption characteristics of a small-capacity engine but with the power and driving pleasure of a much larger one.
Skoda Auto BOD chairman, Reinhard Jung, said: “This brand new TSI engine provides a unique opportunity of combining environmental friendliness with a well-balanced driving performance.
“With substantially lower CO2 figures, this new engine needs to be seen as a contribution to a significant reduction of average emission volumes in our cars.”
The Mlada Boleslav plant will produce the 1.2 TSI engine alongside two versions of the 1.2 HTP three-cylinder engine as well as assembling 1.4 MPI, 1.4 TDI PD, 2.0 TDI PD and 2.0 TDI CR diesel engines.
Engine production provides work for 600 people, with2,800 units built every day. Engines and gearboxes from Mladá Boleslav can be found in engines and gearboxes across the VW Group.
Skoda Yeti 1.2 TSI prices start from £13,775 OTR.
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