Ford will produce 1.0-liter, three-cylinder EcoBoost engine and a new 8-speed transmission sometime in the next two years to raise the fuel economy of its small cars, company executives said today.

Derrick Kuzak, head of global product development, declined to say which Ford model will get the new engine or transmission. He also declined to say where Ford will make the products, other than to say the new transmission will be made in the U.S.

But Ford is escalating efforts to take fuel efficiency to the next level. Three-cylinder engines have been widely available in Europe and emerging markets, but the only other car Americans can buy with a three-cylinder engine is the Smart fortwo, which has a 1.0-liter engine. Ford showed a concept car, the Start, at last year’s Beijing Auto Show that featured a 1.0-liter three-cylinder.

The 1.0-liter would be offered in Ford vehicles throughout the world, Kuzak said.

EcoBoost engines combine turbo-charging and direct-injection fuel technology to provide about 20% better fuel economy than larger engines and reduce greenhouse gas emissions.

Ford launched its first EcoBoost engine in 2009 on the Taurus SHO sedan, and has since offered it in the Flex, Lincoln MKT and F-150 pickup, as well as on three models in Europe – S-Max, Mondeo and Galaxy. Later this year the automaker will launch a 2.0-liter EcoBoost version of the Edge and Explorer.

The 8-speed transmission also will improve fuel efficiency by streamlining the way gears shift. That transmission will be Ford’s first 8-speed. Chrysler will launch an 8-speed transmission this summer and fall on the Chrysler 300 and Dodge Charger.

Separately, Ford will begin production later this year at its Van Dyke plant in Sterling Heights of a new transmission for hybrid vehicles

Ford has been gradually rolling out its EcoBoost technology across its vehicle lineup – now including the F-150 pickup truck and the revised 2013 Taurus sedan — and it appears as though the Mustang could be next in line for a turbocharged powerplant.

We’ve heard rumors of a re-born SVO Mustang before, but the latest report from Motor Authority gives us some concrete details. According to the report, the Mustang will soon be offered with an SVO-appropriate turbocharged four-cylinder.

Although Ford’s 2.0L EcoBoost four-cylinder would appear to be the most likely candidate for the Mustang’s engine bay, that won’t be the case. Instead, Ford will increase the engine’s displacement to 2.3L before strapping it between the fenders of the Mustang. For those keeping track, the original SVO’s motor displaced 2.3L.

No word on output, but the larger engine should provide more power than the 2.0L’s 247 horsepower. Given the V6-powered Mustang can already top 30mpg, we wouldn’t be surprised to see the EcoBoost version inch close to 40mpg.

In addition to the new 2.3L, Ford is also said to be readying a 2.7L EcoBoost V6. The larger mill is being designed for front and rear-wheel drive applications, meaning it could eventually wind up under the hood of the ‘Stang.

Children of the 1980s should temper their enthusiasm, though, as the new-age Mustang SVO isn’t expected until at least 2015.