Mercedes AMG has just taken the wraps off the all new 1.6-litre turbocharged V6 engine for the 2014 Formula One season. The engine will replace the current naturally aspirated 2.4-litre V8 unit in order to comply with the revised engine formula.

Mercedes' new F1 engine is expected to produce about 600bhp with the assistance of two electric motors that features a new energy recovery system (ERS). One of the motors provides an additional 161bhp to the car while the other helps to spool up the engine's turbo or topping up the batteries.

Alongside with the announcement of the new engine, Mercedes AMG has also announced the extension of its supply agreement with Sahara Force India F1 team. Under the deal, Mercedes will supply Force India the internal combustion engine with ERS, transmission and all associated ancillary systems.

Mercedes' revealing comes after Renault, which is the first to show off its new F1 engine under the new regulations. It develops about 750bhp.