The correct response would be Response A. In Response B, you may hyphenate engine and like. The sentence would be like this:
It is German engine-like.
However, this makes engine into an adjective; this changes the meaning of the sentence somewhat. The sentence connotation is now that it has similar characteristics to a German engine. Sentence A dictates that whatever you are talking about has the same process as a German engine (therefore, it is likely an engine as well).
This response is used more commonly in speech; Response B is a rather cumbersome way of saying it. I would avoid it entirely.
Anyways, like goes somewhere between the Predicate Adjective and the compared noun. For example:
1.) I am fast like a cheetah.
In the above example, fast (predicate adjective) and cheetah (compared noun) are the connected words. This sentence therefore gives the idea to the reader that I run at the same speed as a cheetah. This sentence is obviously false, and it is what we call figurative language. Another way of saying Sentence 1 is this:
1.) I am as fast as a cheetah.
Like compares two words. Here are some more examples:
2.) You are cool like me. (This means that I am cool, and you are cool)
3.) He is sitting like me. (This means that he is sitting in the same fashion as me)
4.) I am screaming like a girl. (This means that my scream is the same as a girl's scream)
Let me know if you have any questions!
(By the way, I am not a native English speaker either; I am German, so I know that you can understand all of this!)