The Daimler 2.5-V8/V8-250 was the last Daimler to feature a Daimler engine after the marque was acquired by Jaguar Cars in 1960. The engine is the hemispherical head V8 designed by Edward Turner and first used in the Daimler SP250 (Dart) sports car.
The Daimler 2.5-V8 (or 2 1⁄2-litre V8) was a four-door saloon produced in Coventry, England by Daimler. Launched late in 1962, it was essentially a rebadged Jaguar Mark 2, but fitted with Daimler's 2.5-litre V8 engine; aside from the engine, fluted (furrowed brow) grille and rear number plate surround, badges, drive-train and some interior details (such as a split-bench front seat and a black enamel steering wheel) the Daimler 2.5-V8 was otherwise indistinguishable from the Jaguar Mark 2.
The 2.5-V8 was the first Jaguar designed car to have the Daimler badge. The Daimler V8 engine was more compact and therefore lighter than the six-cylinder engine used in the Jaguar Mark 2, and weighed approximately 50 kg ("1 cwt") less. Spring and damper settings were revised accordingly to suit the altered weight distribution.
Three years after its launch, a Daimler 2 1⁄2-litre saloon with automatic transmission tested by the Britain’s Autocar magazine in May 1966 had a top speed of 112 mph (180 km/h) and could accelerate from 0-60 mph (97 km/h) in 13.6 seconds. An overall fuel consumption of 19.0 miles per imperial gallon (14.9 L/100 km; 15.8 mpg-US) was achieved. The test car was priced in the UK at £1,647 including taxes: Rover's 3-litre with automatic transmission was retailing for £1,770. At the end of 1965, the final drive ratio had been changed from 4.55:1 to 4.27:1, addressing complaints that the car as launched in 1963 had needed to exceed its recommended rev limit in order to reach its top speed, with a corresponding penalty in fuel consumption and engine noise and wear. The testers found the car refined and well equipped with efficient, if rather heavy, brakes. The engine and transmission were felt to be well matched. The car was quiet and smooth but short on low speed torque.
The Daimler V8-250 was a four-door saloon produced in Coventry, England by Daimler from August 1967–1969. It was an updated version of the 2.5-V8 Saloon, introduced in late 1962. The V8-250 differs from the earlier 2.5-V8 in relatively small details: having the 'narrow' bumpers (shared with the Jaguar 240/340), negative-earth electrical system, an alternator (instead of a dynamo) and twin air cleaners, one for each carburettor. Other new features included ventilated leather upholstery, reclining front seats and a heated rear window. Power Steering and Overdrive were optional extras; aside from the engine the Daimler V8-250 was otherwise indistinguishable from the Jaguar 240/340. The 250's place in the Jaguar range was always ill-defined. Whilst historically Daimler had been a more luxurious brand than Jaguar, the 250, though far better equipped than the base-model Jaguar 240, lacked some interior appointments found on the 340. The Daimler 250's engine, being a V8 (generally considered a highly prestigious feature), producing 142 bhp (106 kW). This was in between the outputs of the 2.4- and 3.4-litre six-cylinders. This produced a car with a highly prestigious badge sitting in the middle of its parent-company's range.
In 1968 most of the Jaguar range was replaced by the new XJ6 and the following year saw the launch of the Daimler Sovereign variant, which effectively replaced both the V8-250 and the 420-based Sovereign. Henceforth all new Daimlers would be re-badged Jaguars with no engineering links to the pre-1960 Daimlers.