The turbocharged "Tipo F106 N 000" V8 was evolved from the 208 Turbo's engine, chiefly by adding an intercooler and adopting a new turbocharger. The development of the complete powertrain was carried out by Nicola Materazzi who had extensive experience in turbocharging from the Lancia Stratos GR5, the Ferrari 126C and had been the Chief Engineer for the 288 GTO and GTO Evoluzione (and later the Ferrari F40). Displacement was unchanged, at 1991 cc with a bore and stroke of but the cylinders were coated with Cermetal NC21 to lower the friction; usefully the engine was fitted with a detonation (knock) sensor, able to retard the ignition in case of near catastrophic pre-ignition. There were four overhead camshafts driving two valves per cylinder; Bosch K-jetronic mechanical fuel injection was carried over from the 208. Whereas 208 Turbos had used a KKK turbocharger, these new 328-based cars used a water-cooled IHI unit running at of boost. Charge air was cooled by a Behr air-to-air intercooler mounted on top of the engine. Output was at 6,500 rpm and at 4,100 rpm; maximum torque was reached at engine speeds 700 rpm lower than on the 208 Turbo, making the engine more flexible. The change of turbocharger manufacturer and the addition of the intercooler were design decisions taken from Materazzi's experience with the 288 GTO where the IHI turbochargers had proven to give the best transient response. IHI materials and compressor/turbine geometry was then more advanced than that of KKK. The water-cooling of the turbocharger as well as the lower combustion temperatures afforded by the cooler intake air allow the car to be used harder and more reliably. The car could have produced significantly more power but for commercial reasons Ferrari management decided to keep it below the 270 PS of the naturally aspirated 328.