Any GT-R diehard knows that Nissan built the original R-32 Skyline GT-R back in 1989 for one reason. To win races. And it did, not only in Japan, but also in Australia where its 4wd, twin-turbo, hi-tech wizardry blitzed the touring car championships for two straight years.

The man who was to become known as 'Mr GT-R', Kozo Watanabe, followed that racing tradition with the R-33 and R-34 models into the nineties including specially tuned V-spec variants.

Then, as if to signal the radical change of direction that chief exec Carlos Ghosn had chosen for Nissan, Watanabe was gone from the picture, replaced by a new team of engineers headed by Kazutoshi Mizuno, former Nissan Le Mans chief engineer and Group C team manager.

And one of the first things Mizuno did, while he and his team worked on the handling traits of the new V35 Skyline saloon, was to modify the GT-R's V-spec suspension set-up. He felt that its harsh, highly strung, razor-edged road-handling characteristics were good for circuit racing - on smooth racetracks - but that in the real world, on real roads, it needed more compliance. The resulting M-spec (obviously using the M from Mizuno!), is not just a better rounded GT-R on all road surfaces, but has repercussions for the sportscar on a worldwide scale. More on that in a minute.

A quick spin around the mountains south of Tokyo was enough to see what Nissan has achieved with its latest, and final incarnation of the R34 GT-R.

Like the new V35 Skyline saloon, the M-spec employs Nissan's new 'ripple-control' shock absorbers which work to soak up even the smallest bumps or road undulations to maximise tyre contact with the road. To further ensure the rear stays planted, Mizuno also fitted a modified rear anti-roll bar and revised all the spring rates to enhance the effect of the ripple control upgrade. Whether at high speed on a highway or at lower speeds on the twisty bits, the new suspension set-up is where the R-34 should have started. Not only does it provide a more supple ride. It also allows an average driver more leeway when cornering hard, as you don't have to worry about the tail stepping out so far and so fast. When it does start to go, it is easier to catch and control.

'Of course the M-spec offers a far more comfortable ride on public roads and highways, but its race heritage has not been ignored,' said Mizuno. 'I would say the M-spec is more suited to endurance races while the V-spec is better suited to short sprints where hundredths of a second mean everything.'

But the bottom line is that the M-spec is the future for the GT-R. It gives us a glimpse of where Nissan is going to take its next generation sports flagship.

Ghosn has made it quite clear that he wants future GT-Rs to be a showcase of Nissan's top-end technology in the US and Europe (alas there are no plans by Nissan UK to officially import this car).

To that end, the GT-R must employ a suspension system that does not jump and bounce around on marginalised surfaces but one that can handle the high-speed touring on the autobahns and autostradas of Europe. One Nissan source said that during a test at 250kph on the autobahn, 'the V-spec's harsh settings led to temporary traction loss as the car jumped all over the place'. Mizuno's modifications give it the capability to cruise effortlessly at that speed and higher - essential if it's to compete with the Porsche 911.

It is common knowledge that the next generation of Japanese sports cars, including the new NSX, GT-R and a strongly rumoured V8-powered Toyota 4300GT, will all pack 400bhp-plus, thus placing them head to head with the likes of the Porsche 911 Turbo, Ferrari 360 and BMW M3. It soon becomes clear that the benchmark for the M-spec's handling was Porsche. A comparison test with a 3.4-litre Carrera 4 showed that the ride and compliance of both are closer than they've ever been before. And when it comes to traction and roadholding over seriously testing roads, the revised GT-R can teach the 911 some tricks.

Driven back to back over the same stretch of winding mountain road, the Porsche's limits of adhesion were reached long before we dared take the M-spec any further. At around 60mph on one long uphill left-hander, a minor mid-corner undulation threw the 4wd Carrera's rear up and outwards, requiring armfuls of opposite lock to correct it. Travelling at least 5mph faster, the M-spec took that same mid-corner bump in its stride, displaying adhesion limits that no European rival could compete with.

Another aspect of the M-spec that helps makes it the most desirable GT-R ever, is the attention to detail inside and out. Finished in a new gold silica paint, the car's surface colours change depending on the angle with which light reflects off it. And inside, Nissan offers some rare craftsmanship. Back at the factory, a couple of leather workers have been specially employed to cut top quality leather for the M-spec's moulded bucket seats with stitched GT-R emblem, steering wheel, gear shift and hand brake lever. This takes time, which is limiting production to 50 cars a month.

Now imagine the 2003 model GT-R with its expected 400bhp and the M-spec's more compliant suspension and classier interior, and you'll see that this car is the missing link to the next generation of Japanese supercars. Can't wait!