Ford Pinto engine
At the beginning of 1984, Ford Pinto engine displacement range switched from 1.3/1.6/2.0 to 1.6/1.8/2.0. The newly introduced 1.8 L engine used the 2.0 L crankshaft, so to uniform engine parts for the whole range after dropping the 1.3 L — the 1.6 L was redesigned to also take the 2.0 L crankshaft which had a stroke. This of course led to bringing the bore down to to keep the displacement within range — it was now 1598 cc. The TL16E became now the only available 1.6 L engine of the Pinto range. Although the compression ratio was raised to 9.5:1, the power figures did not differ much from the earlier TL16H version — the engine developed of power and of torque.
This engine is sometimes referred to as 1.6 E-Max engine.
Lotus Cortina
Whilst the engine was being developed, Walter Hayes (Ford) asked Colin Chapman if he would fit the engine to 1,000 Ford saloons for Group 2 homologation. Chapman quickly accepted, although it must have been very busy in the Cheshunt plant, with the Elan about to be launched. The Type 28 or Lotus Cortina or Cortina Lotus (as Ford liked to call it) was duly launched. Ford supplied the 2-door Cortina bodyshells and took care of all the marketing and selling of the cars, whilst Lotus did all the mechanical and cosmetic changes. The major changes involved installing the 1,557 cc () engine, together with the same close-ratio gearbox as the Elan. The rear suspension was drastically altered and lightweight alloy panels were used for doors, bonnet and boot. Lightweight casings were fitted to gearbox and differential. All the Lotus factory cars were painted white with a green stripe (although Ford built some for racing in red, and one customer had a dark blue stripe due to being superstitious about green). The cars also received front quarter bumpers and round Lotus badges were fitted to rear wings and to the right side of the radiator grille.