The Xspeed Arrow has a really interesting history for its short lifetime.
The first Version, the S1, was launched in 1994. It has a 3.2l twinturbo V6, made out of ultra light materials, creating 260hp. The whole car weighs only 1066kg.
In 1995, Xspeed was bought by an arabian businessman, who demanded the Arrow to have more power and be more luxurious. To compete with sportscars as the Porsche 911 turbo or even the Lamborghini Diablo.
So the S2 in 1996 had the same engine, but created 339hp, was more luxurious and had awd, but it also was 130kg heavier.
As cars like the Diablo were still much faster, Xspeed developed the S3, witch had 471hp and the SX 2000 with 605hp. Both came out in 1998 and were critiszied for being too expensive.
The controversy than started:
Many people liked the car as new supercars with lots of power, relatively low weight (SX 2000 1262kg) and great handling, whilst the Xspeed purists saw the car as too expensive, too heavy, too powerful for an Xspeed, that is supposed to be small, nimble and lightweight and completely unfitting for the brand. Purists thought, that the car tried too much to compety with lamborghini etc and forgot the Xspeed brand philosophy of making small lightweight funcars.
One of those purists bought Xspeed in 1999, as the Arabian oil magnate lost the interest in the company.
So the next iteration of the car was the S4 in the year 2000 that went back to the roots.
The improved, really advanded V6 was reduced to only 2.6l, was naturally aspirated, rwd only, manual only, reduced interior etc. It was with 1042kg 20 kg lighter than the S1, bt handled better due too the suspension tech that was developed for the 600hp versions.
The N/A V6 made a whopping 346hp as it revved really high, it had great throttle response, the car handled great, was really fast... And because of new safety standarts, forbidding too use the frame of the Arrow, it was discontinued in 2002.
Oh btw, if you have a mint condition S1, it is really valuable as it was "the original" Arrow and the last car launched under the original Xspeed management. And purists like stuff like that.
Xspeed Arrow (1994-2002) 1.0
Xspeeds most controversial Sportscar (controversial at least for purists)