The T406/AE1107C Liberty shares a common core with the AE 3007 and AE 2100 series of engines.
The V-22's T406 powerplants are housed in wing-tip tilting nacelles, allowing the distinctive flight characteristics of the V-22. For take off and landing the nacelles are directed vertically (90° to fuselage), while for forward flight they are rotated parallel to fuselage. The engine has been considered as a cost-effective upgrade for existing heavylift helicopters such as the CH-47 Chinook and the CH-53.
In 2009 the GAO found that the engines failed after less than 400 hours of service, as compared to the estimated life of 500–600 hours. Multiple updates to the engine platform in 2012-2013 have increased the lifespan significantly.
In April 2012, the DoD ordered 70 AE 1107C engines for the Osprey, with options for up to 268 engines.
Engines with a future block 4 upgrade are expected to deliver ten thousand horsepower.