Exactly, thats the point, the car in question does have a V8 engine, but not a normal engine; in fact the car has a Formula 3000 engine with a similar amount of power to the current formula 3000 cars; about 580 bhp (the Judd V8 engine already commented by dani); furthermore, the car has the sequential gearbox, special suspensions, a lot of carbon fiber in it, and even ceramic brakes, and it could have the electronic traction control although its not as easy to see the difference as it was a modern WRC
The driver in question is Georg Plasa, he is from Germany, and he takes part in Germany and its neighbours such as Switzerland, Austria, Luxembourg, and etcetera
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