A new Porsche engine set to make its debut in the Panamera Turbo will also be used as the powerplant for Volkswagen Group’s Bentley Mulsanne and Audi A8 models.

Built at a new $88.6 million plant in Stuttgart, the 4.0-liter V8 aluminum engine is capable of delivering 542 hp at 6,000 rpm. The engine’s twin turbochargers are located between the opposing cylinder banks, making the engine more compact and providing for better performance and handling.

The new engine is the first Porsche powerplant that will offer on-demand displacement, using a two-stage sliding camshaft that allows four cylinders to be selectively deactivated. Despite the increase in output, Porsche maintains that the updated design provides up to 30 percent more fuel efficiency.

The new V8 will first appear when the Panamera Turbo is launched in November.