Turbo V8's to become AMG only? Mercedes W212 E550 M278 V8 to be replaced by E400 model with a twin turbo 3.0 liter V6

Well the downsizing of motors continues and even Mercedes-Benz is not immune as it appears 550 models with the M278 twin turbo and direct injected 4.6 liter V8 will be replaced with a twin turbo 3.0 liter V6 starting in 2014. The motor will only produce 330 horsepower and 350 pound-feet of torque which is far less than the current E550 puts out which is 402 horsepower and 443 pound-feet of torque. That's a rather large difference between the two.

This report from MotorTrend regarding the axing of the E550 is odd as an E400 actually seems to just slot right into the lineup. Plus, without an E550 model what will the competition be for the BMW and Audi mid-range V8 sedans? Those do not seem to be disappearing any time soon. Mercedes-Benz would not just abandon such a lucrative market.

If this is true then a turbo V8 in the E-Class will only be available in the E63 AMG. It also means this is a precedent other 550 models will be set to follow. The addition of a turbocharged V6 is great news but not when it is at the expense of the M278 V8. Chances are MotorTrend got this wrong and if they did BenzBoost will be the first to point it out.