According to the present invention, a variable compression ratio engine includes a cylinder head and crankcase directly joined by a control shaft, thereby eliminating use of a link between the control shaft and cylinder head. The present invention has a low manufacturing cost and a small size ideal for mass production applications. In the preferred embodiment of the present invention, the control shaft includes a primary set of bearings and an eccentric set of bearings. The primary control shaft set of bearings are mounted directly in the crankcase assembly, and the eccentric control shaft bearings are mounted directly in the cylinder head assembly. There is only one control shaft per cylinder head, and there is no link between the control shaft and cylinder head assembly. The variable compression ratio mechanism also includes moment retaining means to prevent the cylinder head assembly from rotating out of alignment when the engine is running. The moment retaining means is a bushing that is mounted around the engine cylinder. The bushing provides the moment retaining means needed for holding the cylinder head assembly in alignment when the engine is running, and also provides displacement means, where the cylinder head assembly can slide on the bushing. The displacement means is needed to allow the cylinder head assembly to move relative to the crankcase when compression ratio is adjusted.