Mercedes-Benz's AMG unit and builder of the SLS supercar today is publicize its new AMG 5.5-liter V-8 bi-turbo engine at the Geneva Motor Show.

The company touts its new engine with a peak output of up to 563 horsepower and estimated 22-mile-a-gallon performance.

Also, it is reported that its AMG lineup will be launched in the market later this year.

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

Based on an existing Mercedes-Benz 90-degree V8, the new M157 unit will debut in the AMG version of the S-class saloon much later this year.

AMG reveals that the technology includes more efficient use of fuel and leads to lower exhaust emissions, reducing the fuel consumption by up to 25%.

The improved performance than the naturally-aspirated 6.3-litre unit, is mainly reported to be due to the smaller swept volume and consequent lower friction losses.