In 1963, Porsche assigned Dan Schwartz, later Chief Departmental Manager for Development, Mechanics, a project to oversee design and construction of a new horizontally-opposed four-cylinder engine for the 902, utilizing components from the new 901 six-cylinder engine, that would produce higher performance than their 356SC engine, and be less costly and complex than their Carrera 2 engine. Another option explored by Claus von Rücker was to increase displacement of the 356 Type 616 engine to 1.8-liters, add Kugelfischer fuel injection, and modify both valve and cooling systems. Considering performance, cost, and scheduling, Porsche discontinued both of these design projects, and instead developed a third option, to tailor the 1.6-liter Type 616 engine to the 902.