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first reaction to the news the Jaguar XFR's all-new, supercharged 5.0L direct-injection V-8 develops 510 hp is a faintly disappointed "Oh..." It might outgun the 500-hp BMW M5 and the 507-hp Mercedes-Benz E63 AMG, but it comes up short against Cadillac's mighty 556-hp CTS-V and Audi's head-banging 572-hp RS6. We're here to tell you, however, that sheer horsepower ain't everything. Just point the new XFR at your favorite stretch of gnarly two-lane, nail the gas, and you'll soon see what we mean.

The XFR is, of course, the new flagship car in an upgraded and expanded XF range for the 2010 model year. By now you will have noticed the entirely predictable exterior mods: a new front bumper fascia with large air intakes, deeper sills, a vented hood, new 20-in. alloy wheels, and quad tailpipes. Inside, the XFR retains the XF's cool and charismatic interior design, though Dark Oak veneer is the standard wood trim, complementing a unique dark mesh-aluminum dash panel. The XFR's front seats feature electrically adjustable bolsters for greater side support.

The big news is all under the skin: suspension tweaks that include magneto-rheological shocks, bigger brakes, an active differential, and the supercharged version of the all-new AJ-V8 Gen III engine.

The 5.0L Gen III has been designed in-house at Jaguar. The new engine is almost an inch shorter than the current 4.2L V-8, thanks to the relocation of the oil pump. The aluminum block is now a high-pressure die-cast item with cross-bolted main bearing caps. The four-valve cylinder heads are made from recycled aluminum, and the camshafts feature variable valve timing activated by the torque motions of the valves themselves instead of oil pressure, enabling the oil pump to be reduced in size. The engine features what Jaguar claims is an industry-first direct-injection system with centrally mounted, multihole, spray-guided injectors.