We have done extensive towing in mountain passes with our 189FBS and Trailblazer which has an inline 6. This engine is known for torque and handles the most rigorous climbs although we do find ourselves down in first gear occasionally on the steepest ascents to get her over the top.
I would suspect with a 160, which does not have a slide and is lighter, you will be fine with a V6. I guess what we all have to think about is that old "footitis". If your TV meets your needs for the lighter trailer, what do you do when you want to move to a larger unit. I know this dilemma has prevented us from going to a heavier trailer.
We use our hauler for both trailering and every day use, so that trade off requires some thought to how much fuel you want to burn for the rest of the year when you are not towing. In a perfect world we would have a vehicle for towing and a smaller car for every day. Then you are confronted with double everything, which is just not in our budget.
Bottom line? You will haul your 16 footer with minimal problems with a V6.
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