The XLR also is one of the world's first vehicles to be equipped with Magnetic Ride Control - electronically controlled, magnetic-fluid based real-time damping. The system uses four wheel-to-body displacement sensors to measure wheel motion over the road surface and responds by adjusting the shock damping at speeds approaching one millisecond. That's five times faster than previous "real time" damping systems. The secret is the magneto-rheological fluid contained in its dampers, replacing traditional mechanical valves. Suspended in this fluid are tiny iron particles that respond to an electromagnetic charge.

In the presence of a charge, the iron particles align themselves into fibrous structures that almost instantaneously create precise and wide-ranging damping characteristics. With sensors reading the road surface at a rate of 1 inch at 60 mph (25.4 mm at 97 km/h), the system responds by commanding constant changes in damping force at all four corners. The goal is to maintain tire contact with the road surface and to keep the body on an even plane, with smooth, well-controlled body motions even during aggressive maneuvers or on uneven road surfaces.