The Jaguar XK120 is one of the most beautiful sportscars of its time so it doesn’t come by surprise that it was chosen as an inspiration for a new restomod project. UK-based Thomley Kelham, which recently gave us the Lancia Aurelia “Outlaw” European CSL project, has just announced the Jaguar XK European. The vehicle will be offered in limited numbers with prices starting from £550,000 ($718,650) excluding the cost of the donor car.

The Jaguar XK European is based on a donor XK in coupe form, which is transformed following a 5,000-hour restoration and modification process, mostly completed in-house. Starting with the looks, the all-new alloy body was penned by designer Paul Howse, who is known for his work on the McLaren P1 and 720S supercars, with respect to the gorgeous lines of the original.

See Also: Jaguar Classic Restores And Upgrades 1954 XK120 To Perfection

The vehicle retains the aerodynamic shape of the XK120 with a lower roofline, more curvature to the sides inspired by the E-Type, larger side gills, and wider wheel arches enhancing the proportions. All brightwork has been removed for a cleaner look, while a new set of wider alloy wire wheels provide a sportier stance. At the back, the taillights and the rear windscreen are more neatly integrated into the rest of the body with two exhaust pipes sticking out of the long rear overhang.

The company didn’t provide us with interior shots but is saying that the cabin has also been overhauled. The redesigned dashboard is made of body-colored aluminum, combined with high-quality upholstery from Connolly leather. The new seats will provide more support, and the driving position has been vastly improved with a lower H-point. The door cards received new storage pockets and door releases increasing the available knee room.

Modern amenities include electric windows and many optional features like air-conditioning, power steering, Bluetooth, and in-car entertainment options. Finally, there is a discreet roll cage for more safety.

Under the bonnet lies a re-engineered 3.8-liter XK engine producing either 296 hp (221 kW / 300 PS) or 335 hp (250 kW / 340 PS), depending on the specification. The significant increase in power output over the stock 3.4-liter motor which produced between 160-220 hp (119-164 kW / 162-223 PS) back in the day was achieved thanks to a series of modifications. These include direct injection, a bespoke camshaft, rebored cylinders, and an upgraded aluminum radiator with an oil cooler.

Power is sent to the rear axle through a reworked five-speed manual transmission with the help of a new limited-slip differential. Chassis upgrades include a new suspension setup with double wishbones at the front, coilovers, Bilstein shocks, and Eibach springs replacing the rather basic leaf spring rear axle of the original. Stopping power has also been improved with the addition of ventilated discs with four-piston calipers on all four wheels.

While the vehicle is shown in computer-generated images (renderings), Thomley Kelham has already started working on the first example and is accepting orders. The company suggests that the number will be “strictly limited” so interested parties shouldn’t waste any time.