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The history of turbocharging is almost as old as that of the internal combustion engine. As early as 1885 and 1896, Gottlieb Daimler and Rudolf Diesel investigated increasing the power output and reducing the fuel consumption of their engines by pre-compressing the combustion air. In 1925, the Swiss engineer Alfred Büchi was the first to be successful with exhaust gas turbocharging, and achieved a power increase of more than 40%. This was the beginning of the gradual introduction of turbocharging into the automotive industry.
In 1938, the first turbocharged engine for trucks was built by the "Swiss Machine Works Saurer". The the first turbo-powered passenger cars were Chevrolet Corvair Monza and the Oldsmobile Jetfire. Increasingly stringent emission regulations in the late 80's resulted in an increase in turbocharged engines for truck applications and today virtually every truck engine is turbocharged. A breakthrough for passenger car turbocharging was achieved in 1978 with the introduction of the first turbocharged diesel engine passenger car in the Mercedes-Benz 300 SD, followed by the VW Golf Turbo diesel in 1981.
Compared with a naturally aspirated engine of identical power output, the fuel consumption of a turbocharger engine is lower, as some of the normally wasted exhaust energy contributes to the engine's efficiency. Due to the lower volumetric displacement of the turbo engine, frictional and thermal losses are less. Also, the turbocharged engine's installation space requirement is smaller than that of a naturally aspirated engine with the same power output. The high-altitude performance of a turbocharged engine is significantly better. The reason being that with lower air pressure at high altitudes, the power loss of a naturally aspirated engine is considerably more while the performance of the turbine of the turbocharger improves at high altitudes and the engine has barely any power loss.
The reduced overall size of a turbocharged engine reduces the sound-radiating outside and therefore is less noisy than a naturally aspirated engine with identical output. The turbocharger itself acts as an additional silencer and helps in noise reduction.
A turbocharged engine has improved torque characteristics due to the so-called "maxidyne characteristic" (a very high torque increase at low engine speeds). Close to full power output is maintained well below the rated engine speed. Therefore a vehicle with turbocharged engine requires fewer gear changes for climbing a hill and speed loss is lower.
Today, the turbocharging is done even for petrol engines as a means of reducing fuel consumption and environmental pollution on account of lower carbon dioxide (CO2) emissions.