Caterham has also announced that a Suzuki five-speed manual will accompany the Japanese carmaker’s engine, with the combination being adapted to suit the re-engineered chassis.
CEO of Caterham Cars, Graham Macdonald, said that he was not concerned by the small size of the chosen Suzuki engine.
"It is not engine size that matters, it is the grin factor that is our barometer and we believe we have got the formula for our new entry-level vehicle just right,” Mr Macdonald said.
"Suzuki is a leader in producing compact vehicles with extremely efficient engines and that is clearly a shared passion. We needed a particularly light powertrain but it had to be a unit that suited the characteristics inherent to all Sevens.”
Power and torque figures for the engine have not been released, but at least one version of the turbocharged three-cylinder engine fitted to Suzukis overseas produces 48kW and can return around 4.0 l/100km.
Whether the engine will be tuned to produce more power, or if Caterham’s weight-saving measures for the new entry-level Seven will be deemed enough, is unclear.
A spokesperson for Suzuki said that the Caterham image was a good fit for the Japanese brand.
"It has been a very interesting and unique project for us. We trust that supplying our powertrain to Caterham with a respected reputation for building lightweight, low-volume sportscars will enhance our 'sporty' brand image," the spokesperson said.
Caterham Cars celebrates 40 years of the Seven this year, and its new entry-level Seven is expected to go on sale soon, priced at less than 17,000 pounds (AU $29,280).