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Jaguar is allegedly working on a range-topping version of the 2015 XE powered by a V8 engine.

Riding on an all-new iQ[Al] platform, Jaguar's highly anticipated XE sedan aims to end the German dominance in this segment and they want to battle BMW's M, Audi's RS and Mercedes-Benz's AMG with a very hot version called XER-S. The British marque has already confirmed the F-Type's V6 3.0-liter supercharged engine will be offered in the XE but it seems Jaguar is also cooking up a V8-powered version.

According to a report issued by Auto Express, the motor will be capable of delivering 542 bhp (404 kW), a power figure which matches that of the 5.0-liter V8 supercharged engine inside the F-Type R Coupe. Thanks to this engine, the range-topping Jaguar XE will be able to hit a top speed of more than 186 mph (300 km/h).

The regular XE will be revealed in the months to come before going on sale in 2015 so the XER-S will likely see the light of day in 2016, following the introduction of lesser S and RS derivatives.

Gallery: Jaguar plotting XER-S with 542 bhp V8 engine - report

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