Mercedes-Benz has unveiled an all-new 5.5-litre Biturbo V8 engine that it intends to use in its AMG vehicles later this year.

It will replace the naturally-aspirated 6.3-litreV8 engine in AMG’s range, and will make its debut in the Mercedes-Benz S63 AMG later this year, mated to the company’s new seven-speed SpeedShift MCT transmission

The new 5.5-litre Biturbo V8 will be offered with two power settings. The first will produce 537bhp and 800Nm of torque, while the second, more powerful one will have 563bhp and 900Nm of torque. In comparison, the outgoing 6.3-litre V8 unit produces 525bhp and 630Nm of torque.

According to Mercedes-Benz, the S63 AMG-the unit gives a fuel consumption figure of 10.5 litres per 100km, thanks to features like engine start/shop and a driving mode called “Controlled Efficiency”. And the new engine is also cleaner and more efficient.

Despite the improved efficiency, the performance has been slightly improved, with the new engine able to propel the S63 AMG from 0-100km/h in 4.5 seconds, 0.1 seconds faster than before. Top speed is still electronically-limited to 250km/h.