Reports from Britain indicate that Jaguar is in the process of equipping their new mid-size XE sports saloon with a beefy V8 engine and unleash it against BMW’s celebrated M3. To be called Jaguar XE-R, the car will pack 488bhp with a hotter 542bhp version possible.

The XE already has a pretty hot model in the range, the V6 version which is powered by the supercharged V6 S engine from the F-Type with 335 horsepower. But Jaguar apparently wants something closer to the BMW M3 and Mercedes C63 AMG. The goal here is partly challenging the Germans, but mostly using the ‘hot’ models to boost the sales of the ordinary versions.

The proposed performance for the Jaguar XE-R, which will get Jaguar F-Type V8’s engine, calls for a 0 to 62 mph acceleration time of well under 5 seconds. The car will also sport a super aggressive styling kit and be equipped with uprated brakes and suspension as well as larger wheels and tires. Price-wise, it should start at about £55,000 which is the same as the M3.

Apart from the ‘normal’ Jaguar XE-R, JLR’s special operations division may attempt to make their own high-performance XE with a 524bhp V8 out of the F-Type R Coupe. This V8 engine is said to be an easier fit under the XE’s bonnet than the smaller four-cylinder units and Jaguar evidently wants to exploit that big time. This version, which could be called XE SVR, will rival the next Audi RS4.

Via Autocar