Audi decided to challenge the Jaguar XJR on the large luxury car market and introduced a sportier version of the A8, the 1996 S8.
This model was based on the same Volkswagen Group D2 platform and was assembled on the Audi Space Frame technology. It featured plenty of lightweight components and was fitted with a 4.2L V8 engine delivering 340 PS and a 5-speed tiptronic automatic transmission. Its main advantage over the XJR and the later-developed Mercedes S55 AMG was the standard 4-wheel-drive. This model received a slight facelift in 1999 and a 24-PS power boost two years later to keep up with the new S55 AMG.