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2013 Mustang: world's most powerful V-8?

2013 Mustang comes with 650-horsepower production V-8 engine, beating the rival Chevy Corvette ZR-1 by 12 horsepower. Top speed for 2013 Mustang: more than 200 miles per hour. 

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The 2013 Ford Mustang Shelby GT500 is seen at the LA Auto Show in Los Angeles Nov. 16, 2011. Ford claims that it has the world's most powerful production V-8 engine.

Danny Moloshok/Reuters

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The Detroit muscle car horsepower race escalated Tuesday when Ford Motor Co. announced that the 2013 Shelby GT500 Mustang will have a 650-horsepower V-8 engine.

The company will unveil the GT500 and a freshened version of the regular Mustang on Tuesday night at the Los Angeles Auto Show. Ford says the Shelby version will have the most powerful production V-8 engine in the world, with a top speed of over 200 mph.

The 5.8-liter engine is mated with a six-speed automatic transmission. Ford wouldn't release the gas mileage but said it would be good enough to avoid the U.S. tax on gas guzzlers.

The GT500 beats the most powerful model put out by rival General Motors Co. by 12 horsepower. The Chevrolet Corvette ZR-1 is rated at 638 horsepower.

Ford also will unveil the freshened 2013 Mustang, which comes with more aggressive styling and new LED lighting to give it a high-tech look, the company said.

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