When BMW launched its re-envisioned Mini Cooper in 2002, the 12-foot-long car felt downright titanic next to its namesake. By early next year, the Mini will grow even more, but an extra 2.76 inches in length won?t compare to the goodies to come underhood: A pair of new, all-aluminum engines produced by a joint venture between BMW and PSA Peugeot Citroen will boost power in the Cooper and Cooper S by five and seven horsepower, respectively.

The Mini Cooper will draw power from a 1.6-liter four-cylinder featuring technology borrowed from the mother ship, namely BMW?s Valvetronic system, that allows for fully variable valve timing and lift while eliminating the throttle butterfly. Output tops out at 120 hp at 6000 rpm, with torque peaking at 118 lb-ft at 4250 rpm.

The 1.6-liter four in the Cooper S uses a twin-scroll turbocharger and gasoline direct injection to crank out 175 horses at 5500 rpm and a meaty 177 lb-ft of torque from 1600 to 5000 rpm.

Both engines come standard mated to a six-speed manual transmission, with a six-speed automatic available. An available sport switch allows for manual operation of the automatic via steering wheel-mounted paddles, but also increases throttle response and gives the electric power steering a weightier feel for better control during more spirited driving.

That?s right, the Mini gets a fully electric steering system for 2007, replacing the car?s electric-hydraulic unit. At a recent test-drive of a very early Cooper S prototype, the steering had a much more natural feel than many similar systems, delivering plenty of feedback from the tires and responding quickly to inputs.