The production version of the car was first shown to the public in October 1991 after undergoing significant changes. The most obvious of which was a completely different drivetrain and the elimination of the scissor doors. TWR was charged with producing the car and had several goals/rules: the car would be rear wheel drive instead of all wheel drive; would have a turbocharged V6 engine instead of the big V12; and performance goals of over 200 mph (320 km/h), 0 to 60 mph (97 km/h) in 3.8 seconds, and the lightest weight possible. The 6.2-litre V12 had been judged too difficult to get past increasingly strict emission regulations, and there were also reportedly some design problems caused by the size of the power plant. It was replaced with a Tom Walkinshaw-developed 3.5-litre V6 based on the engine used in the Austin Metro 6R4 rally car and fitted with twin Garrett T3 turbochargers, generating 542 bhp (404 kW; 550 PS) of maximum power at 7000 rpm and 476 lb·ft (645 N·m) of torque at 4500 rpm. This engine was the first V6 in Jaguar's history, and was the first to use forced induction. In spite of the smaller displacement and half the number of cylinders, the engine produced more power than the V12 would have. However, potential customers judged the exhaust note to be harsh and the lag from the turbos to be an annoyance. Also missing from the production version of the car was the Ferguson all wheel drive – the production car had only rear driven wheels, through a conventional transaxle – and the ABS. With the promise of four-wheel drive and a 500bhp Jaguar V12 this sounded like a dream come true for enthusiasts and speculators alike. Unfortunately, when production finally began in the early 90s, the boom had gone and Group B (for which the XJ220 was originally conceived) had disappeared. Not only this but Jaguar had made the unpopular decision to drop the 4WD and V12 drivetrain for RWD and turbocharged V6. This led to disgruntled customers, many of whom launched court cases against Jaguar, only to lose, and ultimately unsold 220s.The car entered production in 1992 in a purpose-built factory at Bloxham near Banbury, and the first cars were delivered to customers in July. Original customers included Elton John and the Sultan of Brunei.
Many of the initial customers were dissatisfied not only with the modifications to the original specification but the significant increase in delivery price from the original £361,000 to £403,000 ($650,000 USD). Another blow to potential sales was a global recession which took hold between the car's original announcement and its eventual release. This caused many original speculators to not want to buy the car, either because they were no longer able, or because they did not think they could sell it on. Further complicating the issue was Tom Walkinshaw's offer of the faster (by acceleration, not top speed), more expensive and more exclusive XJR-15 which was based on the Le Mans champion XJR-9. Some customers reportedly either sued Jaguar or threatened to sue; in any case, Jaguar gave the customers the option to buy themselves out of the delivery contract. As a result, many of the owners challenged Jaguar in court where the Judge eventually sided with Jaguar. To reduce costs the use of parts from mass production cars had been extensive; for example the rear view mirrors came from the Citroën CX 2 Series. In spite of the drama surrounding its creation, a total of 281 cars were made and by 1997, few of these remained available for sale new at £150,000. Nowadays, it remains a sought-after collectible sports car, fetching £100,000+.The XJ220 is not only the fastest but the widest car Jaguar has ever built at nearly 7 feet in width. A racing version called the XJ220C was also made. The XJ220C, driven by Win Percy won its first race, a round of the BRDC National Sports GT Challenge at Silverstone. Three works XJ220C's were entered in the 1993 Le Mans 24 Hour race, in the newly created Grand Touring Class. Two of the cars retired but one XJ220, driven by John Nielsen, David Brabham and David Coulthard took the checkered flag to take a class win. This, however, was revoked two weeks later when the XJ220C was disqualified for not running catalytic converters on the cars when the road-going XJ220s did. An XJ220 would also be used in the Italian GT Championship in the early 1990s, although this car had no factory support. During the mid-nineties, the Sultan of Brunei and his brother Prince Jefri secretly bought hundreds of sports cars and had them custom appointed by various companies. One of these is a custom Jaguar XJ220 that has been heavily modified by Pininfarina. Modifications included fixed headlights, replacing the pop-up versions originally installed, and a redesigned double-vane rear wing.In 1992 at the Nardò Ring, Martin Brundle drove an XJ220 to 212.3 mph (341.7 km/h). The car's catalytic converters sap the engine of an estimated 60 bhp (45 kW), the catalysts were later disconnected and the rev limiter was increased from 7200 rpm to 7900 rpm in a quest to enable the XJ220 reach a higher top speed. On a later run with the modifications, Brundle took the XJ220 to 217.1 mph (349.4 km/h) (the equivalent to approximately 223 mph (359 km/h) on a straight road).