Time for a new V8?
BMW has a long-standing reputation for building excellent engines, most famously straight-sixes. Its V8s have also achieved acclaimed status, but the Bavarian automaker has not built a new V8 for a few years, most likely due to increased fuel emissions restrictions. It just didn't make financial sense. This doesn't mean, however, that it's abandoning new V8s entirely.
In fact, according to a new rumor courtesy of BMW Blog, BMW is currently working on a new V8 engine that's expected to arrive in two to three years' time. Specific details are not yet available but the engine does already have a codename: S68. More than likely, it'll be a major update of the current S63, found in today's M5 sedan. This twin-turbocharged 4.4-liter V8 produces as much as 617 horsepower and 553 lb-ft of torque in the M5 Competition.
The new/heavily updated S68 will retain the twin-turbo setup and the "hot V" configuration, but it'll supposedly be smaller and lighter. More interestingly, it'll feature some sort of electrification. BMW has not yet confirmed any of this information, but sources indicate the V8 will power the upcoming M5 CS.
Adding electrification will enable it to comply with emissions legislation. In the meantime, expect the M5 to receive a mid-life facelift next year, though it'll still retain the S63. Also unknown is what additional models could utilize the new S68 aside from the rumored M5 CS. It would not make a whole lot of sense to spend time and money developing this engine for a single model.
So the question is this: what other current BMWs utilize V8s, specifically the S63? That's easy: the X5 M, X6 M, and M8. Perhaps it might be best to think of the S68 V8 as the lighter, more compact, and partially electrified S63 successor that will be used for potentially even more powerful variants of those vehicles as well.