MONTVALE, NJ - Mercedes-Benz's AMG unit is touting its new AMG 5.5L V-8 bi-turbo engine with a peak output of up to 563 horsepower and estimated 22 mile-per-gallon performance, according to USA Today. It's going to start showing up in the AMG lineup later this year.

"We are confronting the challenges of the future and focusing on fuel consumption and exhaust emissions even more intensively than before," says Volker Mornhinweg, chairman of Mercedes-AMG.

The new engine will be combined with a seven-speed sports transmission that Mercedes says combines performance with economy, and includes a new start/stop function in the "controlled efficiency" driving mode.

Basically, according to USA Today, it sounds like Mercedes pulled out every trick in the book for this one: direct gasoline injection with spray-guided combustion and twin turbocharging. AMG says the technology makes more efficient use of fuel and leads to lower exhaust emissions. Fuel consumption is reduced by 25 percent.

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