I can see VW know starting a development of a new V16 7.0L diesel for the next VW Touareg, or Bugatti 4dr coupe.

I really have no idea why such big displacement diesel is needed - since it is already a turbo, and technology is so advanced today multi-turbo diesel engines are already a reality (eg. MB tri-turbo diesel engines).
Why not developing / offering a tri- or quad-turbo V8 4.0 instead - with same, or even more power & torque output?
Especially now when trend is leaning towards lower displacement & less cylinder twin / multi turbo solutions - either petrol, or gasoline.
