Since the mid-1970s, MTU has been working on the third generation of tank engines, the Series 880. With these engines the installation volume of a power pack has again been considerably reduced. For example, a power pack with the 12-cylinder engine MT 883 has the same power rating as the Leopard 2 MBT engine but requires only 60 per cent of its installation volume.

Major design features of the MTU 880 Series include direct fuel injection, four valves per cylinder, digital electronic management, sequential turbocharging and intercooler arrangements matched to specific requirements. Modern turbocharger technology produces increased torque ratings up to 30 per cent in the lower speed range.

Prototype power packs have been built by MTU for several vehicles in the USA and Europe including the German PzH 2000 155 mm self-propelled artillery system, the German Marder 2 armoured infantry fighting vehicle (which was cancelled late in 1992), the US programme for the Advanced Amphibious Assault Vehicle and for the French Giat Industries' Leclerc Tropicalise.

MTU has been awarded a contract for series production of EuroPowerPacks from Giat Industries of France and the first of these was shipped late in 1992. The EuroPowerPack incorporates the MTU MT 883 V12 diesel, a transversely mounted Renk HSWL 295 TM automatic transmission and a cooling and air filtration system.

The first application for the EuroPowerPack is in the re-engined Leclerc MBT for the United Arab Emirates and the Giat Industries' Leclerc armoured recovery vehicle.

For trials purposes, a EuroPowerPack has been installed in a new version of the Vickers Defence Systems Challenger 2 called Challenger 2E. This version has been developed mainly for the export market and this has been demonstrated in Turkey and Saudi Arabia.

According to MTU, the installation of the MTU EuroPowerPack in Challenger 2E saves a considerable amount of space which could be used for other purposes. It also increases the mobility of the vehicle as well as reducing fuel consumption.

For the export market, especially Turkey, a General Dynamics Land Systems M1A2 MBT has been fitted with a EuroPowerPack and this completed initial trials late in 1998.

For application in amphibious vehicles or for electric drive, a version of the MTU 883 rated at 1,920 kW (2,600 hp) is now under development. This version of the MTU MT 883 performed a 400 hour endurance run in 1996.

MTU has been awarded a contract from General Dynamics Land Systems, prime contractor for the US Marine Corps Advanced Amphibious Assault Vehicle (AAAV) for a small number of MTU MT 883 engines for installation in the prototype vehicles. For the marine propulsion mode the engine will be rated at 1,920 kW (2,600 hp) while for land mode it will be rated at 645 kW (865 hp).

For this programme, MTU will co-operate with Detroit Diesel Corporation of the USA which will deliver the engines to General Dynamics Land Systems for integration with the transmission.

The test run was completed with minor irregularities using a conventional two-stage turbocharging group. A new, also two-stage but more compact and space saving, turbocharger has since been developed for the series production engine.

The new turbocharger group comprises two radial compressors and a radial turbine on a common shaft. In addition, the MT 883 will be fitted with a sequential turbocharger to ensure good operational performance both on water and on land. The basic engine has not been changed for the AAAV application.

Early in 1996, the German MoD placed a contract with Krauss-Maffei Wegmann for the supply of 185 155 mm/52 calibre PzH 2000 self-propelled artillery systems. These are powered by MTU 8V 881 engine for which MTU will also supply the cooling and air filtration system.

For this application the direct injection MTU 8 V 881 will be rated at 735 kW (1,000 hp) at 3,000 rpm. It also features a digital engine management system which ensures optimum operating characteristics under all operating conditions. For the PzH 2000 application the MTU 8 V 881 is coupled to a Renk HSWL 284 transmission. The first production PzH 2000 system was delivered to the German Army in July 1998 and production will continue to 2002.

In 1998, MTU and General Dynamics Land Systems of the US signed an agreement under which the MTU 880 series of diesel engines will be manufactured in the US and offered on the home and export markets.

Production of the MTU 880 series will be undertaken at General Dynamics Land Systems Muskegon facility where production of the older AVDS-1790 series of V-12 diesel engine has been undertaken for many years with over 44,000 engines built. Most of these have been for US built M47/M48/M60 and the lsraeli"Merkava MBTs.

Possible US applications of the MT 883 are export versions of the M1A2, for example Turkey, who has expressed an interest in a diesel powered version rather than the normal turbine powered model and re-engineering of US Army M1A1/M1A2 MBTs.

Although the US Army is still committed to the 155 mm Crusader self-propelled artillery system, under development by United Defense and General Dynamics Land Systems, Krauss-Maffei Wegmann believe that their PzH 2000 155 mm/52 calibre system is a cost effective alternative to Crusader.