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Jaguar is reported to working on a more powerful version of its entry level saloon the XE to rival the BMW M3 and the Mercedes AMG C63 sports sedans. The new car could be called the XE-R and will come with a V8 engine borrowed from the F-Type sportscar.

The V8 engine will develop 488 bhp and 625 Nm or torque that will propel the car from 0 to 100 kph in less than 5 seconds. It will use retuned adaptive dampers from the XE-S and will come with the 8 speed ZF automatic gearbox that will be tweaked to enable quicker and more aggressive shifts.

A range topping SVR is also on the cards which will use the 5.0 litre supercharged V8 from the F-Type R that puts out 542 bhp and 680 Nm torque. The XE SVR will also get carbon fibre treatment to reduce weight. Modifications to the body for aerodynamics are also expected.

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