When Jaguar bought Daimler in 1960, plans to launch a smaller saloon based on the Vauxhall Cresta were abandoned. But Daimler distributor Stratstone wanted a smaller Daimler to sell alongside the Majestic, and incentivised Jaguar to create one by offering to give up its secondary VW franchise and focus solely on Jaguar and Daimler if a small Daimler in the manner of the Conquest could be created.
The most cost-effective solution was to take the Jaguar Mk2 and fit Daimler’s 2.5 litre V8 as fitted to the SP250 sports car – along with an automatic gearbox. A Daimler grille and rear plinth were fitted along with some minor interior changes, and the Daimler 2.5V8 was launched on 8 October 1962. Priced at £1,786 against the £1,664 of the Jaguar 3.4 Mk2 manual, it was pitched above the Jaguar 2.4 by over £200 and even, initially, more than the powerful 3.8 litre manual. For 1967 the Daimler was updated alongside the Jaguars, but avoided the cost cutting measures – the new V8-250 kept the leather trim and foglamps of the older car. It was replaced in 1969 by
