Official pricing has been announced for the new Volkswagen Beetle and Beetle Convertible models powered by the firm’s EA888 1.8-liter turbocharged and direct-injection TSI engine. The new engine replaces the 2.5 liter engine in the lineup and offers significantly better fuel economy with the same 170 horsepower output as the outgoing unit.

The 1.8T engine, which also makes 184 lb-ft of torque, features a number of refinements, such as a new thinwall cylinder block, a cylinder head with an integrated exhaust manifold, and careful attention to the reduction of friction.

It is expected to deliver 33 mpg on the highway and 28 combined when equipped with a six-speed automatic transmission. With the manual transmission model, the EPA city/combined/highway fuel economy ratings have improved from 22/25/31 mpg to 24/27/33 mpg.

The new Volkswagen Beetle 1.8T is priced at $20,295 when equipped with a five-speed manual transmission and $21,395 with a six-speed automatic transmission. The Convertible is only available with the six-speed automatic, and starts at $25,170. There is also an $820 destination charge that needs to be paid separately for both models.