Nismo originally designed the concept of the Z-tune in 2002 when Nissan was putting an end to the R34 Skyline production. The first Z-tune was built in 2003, using a used 2002 Skyline GT-R V·Spec II. It was built with a concept RB26DETT 'Z1' engine. This engine was based on Nissan's Le Mans GT2 and GT500 racing experiences. As with the racing vehicles a strengthened engine block and stroked crankshaft were utilised. The engine was also bored. With the new displacement of 2.8 L and upgraded turbochargers the Z1 engine was rated at 368 kW (500 PS; 493 hp) at 6800 rpm and 540 N⋅m (398 lbf⋅ft) of torque at 5200 rpm. The Z-Tune had a 0–100 km/h (62 mph) acceleration time of 3.8 seconds and has a top speed of over 327 km/h (203 mph).

Nismo was then given the approval from Nissan to build Z-tune models for the Nismo anniversary. Nismo then purchased 18[65] used R34 GT-R V·Spec, each with less than 29,000 km (18,000 miles) on the odometer, they were then completely stripped and were resprayed to a "Z-tune Silver," a special colour exclusively for the Z-tune. One car was left in its original colour of Midnight Purple III. For each of the 18 production models, the 2.8 L engine was revised to allow it to reach a speed of 8,000 rpm. The turbochargers were supplied by IHI in Japan. The engine is advertised to be able to generate 368 kW (500 PS; 493 hp) (for warranty reasons). This second revision of the Z-tune engine is called the 'Z2'. The bodywork is designed with the same functional components used in Nismo's GT500 racing cars, such as engine bay vents on the bonnet and bumpers, as well as wider arches for wider wheels. The Z-tune is also improved with an aggressive suspension setup from Sachs, and a specially designed Brembo brake system.

The entire car is essentially handmade, with the car being completely stripped and re-built from the ground up. Engineers reinforced and stiffened the chassis seam welding in key areas such as the door seams and door frames and added carbon fibre to the strut towers and transmission tunnel and the engine bay, completely redesigning the suspension, drivetrain, engine, gearbox and other components so as to work at maximum efficiency and reliability as is expected of a road-going vehicle. Although Nismo planned on building 20 cars, they ceased production on only 19 (including 2 prototypes)

Car by RWB Banksy Kai