The Mercedes-Benz E63 AMG saloon

The Mercedes-Benz E63 AMG saloon has been unveiled at the New York motor show. As part of the “AMG Performance 2015″ model strategy, the naturally aspirated 6.2-litre V8 engine has been swapped for a new AMG 5.5-litre twin-turbocharged unit. This could be Mercedes-Benz and AMG’s response to the upcoming twin-turbo V8 BMW M5 and the rumoured Jaguar XFR-S. 

But the main reason for ditching the 6.2 and going to turbo power is to cut emissions and improve fuel consumption, from 345g/km to 232g/km. Mercedes says the new car is 22% more efficient than the old naturally aspirated model, with a Speedshift MCT seven-speed transmission. The E63 AMG has a whopping 518bhp and 516lb ft of torque, or 550bhp the optional AMG Performance Package. Power has fallen by 5bhp but torque is up by a massive 52lb ft, the resulting forward shove likely to cover the horsepower shortfall. The performance results are 0-60mph in 4.4secs, while the top speed is limited to either 155mph or 186mph.

Adding the AMG Performance package which could cost as much as £6500 increases output a tenth faster than the standard tune.

Mercedes have said that it has 'significantly upgraded' the inside of the car, this includes a new three-spoke steering wheel, aluminium shift paddles and a 3D full colour TFT display in the centre of the speedometer.

The revised AMG will go on sale later this year priced from around £75,000 for the saloon, the estate likely to command a £3000 premium. Unlike the M5 you’ll be able to get it as an estate too, both cars will boast sub-five seconds 0-62 times and hit 155mph.