BMW is already working on the fifth-generation M5 and its official debut will be made 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. The engine will have an out of 550 hp, making the M5 a serious competition for Mercedes.

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.

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Source: AutoCar

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