Work on the new BMW M5 is gathering pace, industry sources have revealed to Autocar. M division is collaborating closely with the team developing the next 5-series, and plans to take the supersaloon fight to Mercedes’s doorstep with an all-new, fifth-generation 550bhp M5 in 2011. Mercedes is currently working on a ground-up redesign of the E63 that will appear in 2009.
The new 5-series, due in 2010, will be an obvious evolution of today’s design, and the new M5 is expected to use the current V10, bored out to 5.5 litres. It is also likely to get a direct injection, turbocharged unit, to reduce emissions. The engines will be available with either the six-speed manual gearbox or the new seven-speed M DCT double-clutch transmission.
Further improvements in fuel economy would result from the use of the company’s stop-start technology. BMW has already emphasised that it wants to reduce the emissions of the new 5-series through the Efficient Dynamics programme and it’s unlikely that the M5 would sidestep this technology. The part-time alternator system, for example, which is branded as regenerative braking, boosts power and economy without in any way affecting performance.
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to far away..to judge

Only 50 hp increase?
too early.

NA 5.5 litre V10 -very probable:turbocharged 5.5 litre V10 - I have serious doubts.

One thing is 100% sure - M DCT - this is what next M5 is getting.

^ Duh

Edit;

I'd like BMW to keep the SMG gearbox tooif Im honest. It's so manly.

Hmmm, if tha is this is the engine that the new M5 is gonna have it think it´s not a real step forward compared to the actual one., not even more powerfull than the RS6.

But what if they put the F10 on a diet...

BMW obviously aren't playing the power game if they are just going to bore out the power plant. It's pretty clear that they want to promote Efficent Dynamics. However, if the engine is turbocharged, it's the torque that will really benefit. It's definitely not as far away as you guys think. 2 years to develop an engine/suspension components isn't THAT far away

I would have thought BMW would have started down sizing engines, on WCF it says it's going to get TTs! I'm all for this if the 3.0 liter TT I6 is anything to go for!