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Mercedes has announced the third model in its 63-badged AMG line-up to get the firm’s new 5.5-litre twin-turbocharged V8 unit. Meet the new E-not-a-6.3 AMG.

That 5.5-litre V8 - first seen on the S63 AMG and more recently in the CLS63 AMG - gets a power boost from 518bhp to 525bhp, rising to 557bhp if you spec the AMG Performance Pack. Which you should, because that pack increases the turbo pressure, kicking torque up to the tune of 590lb ft (75lb ft more than the ‘standard’ E63).

See more pics of the new E63 AMG

The 0-62mph dash now takes 4.2 seconds with the AMG pack (4.3 without), and top speed is, naturally, limited to 155mph.

The AMG E-Class comes with Merc’s AMG Speedshift MCT seven-speeder, a unit that uses a wet start-up clutch in place of a conventional torque converter, along with AMG ride control with a 56mm wider front track, independent wheel carriers and an electronically controlled damping system.

The AMG’s steering is electromechanical, varying the power assistance according to your suspension mode. Rumours that it can accurately detect the nature of your breakfast and thus put you in ‘safe’ mode are totally unfounded.

The new E is visibly distinguished via a big ‘V8 Biturbo’ badge, wider front wings, new light alloy wheels and some new interior bits and pieces.

It launches in September this year and prices start from £93,500. Keep in mind the new BMW M5 is on its way soon…which gets your vote?

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