Only from 2003 to 2005 did the company produce the 1.6-liter Volkswagen BGU engine, which was fitted to PQ35 platform vehicles like the VW Touran, Golf 5, Skoda Octavia, and Seat Altea. This Euro 4 unit has a secondary air system, an EGR, and an absolute pressure sensor in place of a mass air flow sensor.

AEH, AHL, AKL, ALZ, ANA, APF, ARM, AVU, BFQ, BGU, BSE, and BSF are all part of the EA113-1.6 series.
Specifications
| Production years | 2003-2005 |
| Displacement, cc | 1595 |
| Fuel system | injector |
| Power output, hp | 102 |
| Torque output, Nm | 148 |
| Cylinder block | aluminum R4 |
| Block head | aluminum 8v |
| Cylinder bore, mm | 81 |
| Piston stroke, mm | 77.4 |
| Compression ratio | 10.5 |
| Features | EGR, EPC |
| Hydraulic lifters | yes |
| Timing drive | belt |
| Phase regulator | no |
| Turbocharging | no |
| Recommended engine oil | 5W-40 (approval: VW 502 00 or VW 505 00) |
| Engine oil capacity, liter | 4.5 |
| Fuel type | petrol |
| Euro standards | EURO 4 |
| Fuel consumption, L/100 km (for VW Touran 2004) — city — highway — combined |
10.9 6.2 7.8 |
| Engine lifespan, km | ~340 000 |
The engine was installed on:
- Audi A3 2 (8P) in 2003 – 2005;
- Seat Altea 1 (5P) in 2004 – 2005;
- Seat Toledo 3 (5P) in 2004 – 2005;
- Skoda Octavia 2 (1Z) in 2004 – 2005;
- Volkswagen Caddy 3 (2K) in 2003 – 2005;
- Volkswagen Golf 5 (1K) in 2004 – 2005;
- Volkswagen Golf Plus 1 (5M) in 2004 – 2005;
- Volkswagen Touran 1 (1T) in 2003 – 2005.
Disadvantages of the VW BGU engine
This engine is dependable and has a straightforward design; it only worries about high mileage.
Because of the rings, it is typically reprimanded for being an oil burner, but this is closer to 200,000 kilometers.
The ignition system is having a lot of problems: the coil is cracking and the contacts are oxidized.
The manuals state that the valves bend when the timing belt breaks, which occurs every 90,000 kilometers.
The cooling system’s plastic tee and exhaust manifold frequently burst.
