Hybrid Engine: The XM is powered by a hybrid system that combines a V8 gasoline engine with an electric motor, delivering a total output of around 644 horsepower. The more powerful "Label Red" version boosts that output to a massive 738 horsepower. Hybrid Engine: The XM is powered by a hybrid system that combines a V8 gasoline engine with an electric motor, delivering a total output of around 644 horsepower. The more powerful "Label Red" version boosts that output to a massive 738 horsepower.