The engines initially offered were the entry-level 3.2 (216 bhp) and the six-cylinder 4.0-litre (now 245 bhp), plus a supercharged version of the latter delivering 321 bhp in the new XJR. The first time Jaguar had fitted a supercharger, this put the XJ up against the BMW M5 and Mercedes E500, and although it could not compete on outright pace, it was the most civilized of the three. It also showed up how dated the other, normally-aspirated, engines had become.
Reviving the mainstream models, the all-new AJ-V8 engine was fitted in 1997, a 290 bhp quad-cam 4.0-litre, 32-valve unit made at the Ford plant in Bridgend, South Wales, but designed by Jaguar's own team at Whitley. 1997 also bought substantial changes to the X300's body and structure, with stiffening and reinforcement, which gave much-improved handling and road behaviour. It didn't address the growing criticism that the XJ was simply too cramped in the rear, though, and that its boot was too small for such a long car.
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