If there’s any doubt about Jaguar’s desire to establish itself as an equal to its German competitors, the latest news about the Brit brand’s forthcoming compact XE should banish it. The latest tidbit, which comes to us via Autocar.co.uk, suggests Jaguar is working on a V8-powered version called the XE-R that will take on established high-po sport compact sedans like the BMW M3 and Mercedes-AMG C 63.

Motivation—and lots of it—is expected to come from a 5.0L V8 used in the F-Type in other markets, a motor that generates 488 hp in that car and could cut the XE’s zero-to-100 km/h to less than four seconds. Sources within Jaguar say the V8 is actually an easier fit in the XE than the Ingenium four-cylinder diesel and supercharged gasser V6 the company has already confirmed for the car’s launch.

But wait, it gets better (maybe): the XE-R could lead to an even hotter version of the car powered by the stonking 550-hp motor used in the F-Type R sold here.

Further details are scant, beyond the fact the XE-R would likely use the same eight-speed automatic transmission as the rest of the XE line.

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