Mercedes-Benz has updated its E63 AMG performance sedan for the 2012 model year, including an all-new 5.5L twin-turbo V8.

Mercedes-Benz has updated its E63 AMG performance sedan for the 2012 model. Making its world debut at the New York International Auto Show, the 2012 E63 features a number of improvements, including Mercedes-Benz's new 5.5L twin-turbocharged V8.

Replacing the naturally-aspirated 6.2L V8 found in the 2011 E63, the new 5.5L biturbo unit promises the same level of performance with much improved fuel economy ratings. Mercedes-Benz has yet to release U.S. fuel economy ratings for the new E63 but says the car reduced fuel consumption by 22 percent on the European cycle. If that holds true for the U.S.-spec car, the 2012 E63 AMG could return a combined 18mpg.

In base form the 2012 E63 develops 518 horsepower - matching that of the 2011 model - but its 516 lb-ft of torque trumps the old car's 485 lb-ft of torque. Mercedes' AMG Performance Package remains of offer for 2012, bumping power to 550 horsepower and 590 lb-ft of torque. Mercedes says the base car can scoot from 0-60 in 4.4 seconds while the AMG Package lops off another 0.1 seconds.

Despite that added power Mercedes-Benz was able to improve the E63's fuel economy through a host of new technologies. The 2012 version of the car features a Controlled Efficiency transmission function which activates an ECO Start/Stop system and automatically starts the car from a stop in second gear. The Controlled Efficiency - indicated by a "C" on the car's gear lever - also shifts earlier to avoid higher engine speeds. The transmission itself remains Mercedes' seven-speed unit.

But for when the road opens up, the 2012 E63 also offers Sport Plus and Manual modes that raise engine speeds and shorten shift times.

To ensure the car stays planted at any speed, the 2012 E63 AMG features a 2.2 inch wider front track with independent wheel carriers to increase negative camber. New steel suspension struts and air suspension struts on the rear axle further enhance the car's stability.

Inside the 2012 E63 also gets a light freshening, including a new steering wheel, revised dashboard and updated shift lever.

Look for the 2012 Mercedes-Benz E63 AMG to arrive on dealer lots this fall.

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