Holden Special Vehicles has gone all-out for the final celebration of its 20th birthday, creating a car that sets a new performance benchmark in Australian-made motoring.

It is a 7-litre animal with 370kW and 640Nm, and a 0-100km/h time in the supercar league — quicker than five seconds.

The HSV W427 is being revealed on the opening day of the 2008 Melbourne Motor Show, which runs until March 10, and is already cleared for a limited production run of about 200 cars a year at HSV headquarters in Clayton.

HSV makes no apologies for the car, even at a time when fuel economy and social responsibility are gaining importance in motoring, and says it shows what the company can do and what the VE Commodore can become.

“It's certainly the quickest and most powerful HSV car. It's the ultimate expression of what HSV can do,” company managing director Scott Grant says.

“Why are we doing it? Because we can. I've said that before, but it's true.”

The heart of the W427 is the same LS7 V8 engine used in the US in the Chevrolet Corvette, complete with a dry-sump oil system, a unique cold-air intake and an “active” exhaust system, which runs quiet at idle but opens to a bellowing roar at full throttle.

The show car has been painted in Panorama Silver, the same body colour used for the original HSV VL Commodore — nicknamed the Batmobile — 20 years ago and has a red leather interior.

But most people will be struck by the super-aggressive front styling — which lifts the impact of the VE Commodore to a new level — the 20-inch alloy wheels and the carbon-fibre rear spoiler.

The W427 is the second 7-litre concept from HSV, following a race-bred Monaro that never got beyond a good idea.

Only two of the Monaros were built. One is on display at GM Holden headquarters in Fishermans Bend, the other is for sale in Sydney for more than $900,000.

“We got close to launching a 427 Monaro, but it didn't make it through the system, mainly because of technical issues, but also the price was going way, way up to $200,000 and more,” Grant says.

“The VE architecture provides us with the opportunity to do the car properly, allowing us to drop in the higher-performance engines.

“The level of modification and cost of the previous car was out of control, but this time it's relatively affordable.”

Grant is predicting a price about $125,000 and says all W427s will be built in a special new production area at Clayton.

“We still don't know the final price. The car will be available in July for somewhere around $125,000-plus,” he says.

“That price range is not for everybody, but a fair amount of work has gone into the car.

“The interior treatment is different, the transmission is different, the front fascia is completely different. Apart from the engine, there are new wheels, a six-piston braking package, a rear carbon-fibre spoiler.

“There are quite a few differences around the car and that will make it a car that gives a halo to the HSV brand.”

Grant says customers will be encouraged to watch progress as their cars are built.

“The cars really will be very, very special. We are going to build about four a week. And we will only build them to order. We don't have a sales plan as such.

“We will hand-build these cars. They will come from Holden as a GTS and then we will completely hand-build them. There will be no automated production in terms of assembly.

“Customers will have a unique opportunity to get close to their cars. That could mean a webcam for live updates or they can come and watch.”

Grant says HSV has been looking at a 7-litre engine for more than a year, tapping into the American pipeline that has provided engineering support, and will eventually ship complete engines to Australia.

“We're always looking at powertrains. We've been searching for years for a halo product that says what the brand is about.”

But is the W427 appropriate for 2008?

“The answer to that is from an HSV brand point of view, and not just this car. We are a niche company and we appeal to people who appreciate our sort of cars,” Grant says.

“On a small, limited basis I think the W427 is appropriate for our company and our customers.”