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This mule is the first evidence Jaguar is working on a 3 Series fighter

Rumors of an entry-level, BMW 3 Series-fighting Jaguar sedan have been floating around for quite some time, but thanks to our intrepid spy photographers, we now have visible proof that such a model is, in fact, in the works.
Despite this tester's XF fittings, it's clear that what lies beneath is an entirely different beast. The doors have been shortened, roofline adjusted, rear deck lopped off and exhaust replaced, giving us a better idea of the new sedan's smaller dimensions and details. The new Jag, which may be dubbed "XS," is expected to ride on Jaguar's PLA (Premium Lightweight Architecture) platform, touting weight-saving materials that should do a lot to keep overall heft to a minimum. Both turbocharged four- and supercharged six-cylinder powertrains are expected to be on tap.
Codenamed X760, the new small sedan will reportedly hit the market in 2015. Earlier reports have indicated that a new crossover - Jag's first ever - riding on the same platform will arrive shortly thereafter, so that suggests that the platform will be fitted with all-wheel drive as well.

2016 Jaguar F-Type debuts available manual transmission, AWD

If you're like us, you fell in the deepest, darkest sort of love with Jaguar's F-Type the moment its voluptuous form first surfaced. The car's full-bodied engine specs only furthered our ardor, and the droptop Jag sealed the deal before we even turned a wheel - all it took was hearing its engine bark to life.
And yet, even after driving the original convertible and the subsequent coupe, we've never quite shaken the notion that Jaguar erred a bit too heavily on the Grand Touring side of the equation for a proper sports car. That's partially because even the base model comes with a boatload of weight-adding luxury features. But perhaps more importantly, it's because the F-Type has only been available with an automatic transmission. Admittedly, the gearbox in question is a damned good paddle-shifted eight-speed ZF unit, but it's always chafed a bit that Jaguar wasn't committed to offering purists a manual - even if such a model would never be a high-volume proposition.
Apparently we weren't the only ones bothered by three-pedal omission. According to Russ Varney, F-Type Vehicle Program Director,

Jaguar F-Type's next generation could be mid-engined

Jaguar's heritage is built on sports cars powered by a big, front-mounted engine covered by a long hood. The F-Type perfectly fits into this mold, but the company is ready and willing to set tradition aside in order to inject more performance into its next two-door model. Ian Callum, Jaguar's former design director, told Autocar that he had worked with Julian Thomson, his successor, to outline what the next F might look like, and the Chevrolet Corvette's recent transformation seemingly inspired them. His proposal calls for moving the engine from directly in front of the firewall to right behind the cabin. Making the F-Type mid-engined would shift its proportions in a wider, lower, and more aggressive direction. Sound familiar? It will if you've kept up with Jaguar news over the past few years. "We could get quite close [to the C-X75]," Callum said. The jet turbine-powered, James Bond-fighting C-X75 concept released in 2010 was on track for production, but it was canceled at the last minute. Callum's comments confirm there is still a small but vocal group of engineers in Jaguar's research and development department who want to see a mid-engined coupe join the company's portfolio. Whether such a model will appear is up in the air. Callum retired to form his own design firm a few weeks ago, so the F-Type's fate is no longer in his hands. He added that the option of making the second-generation model another front-engined, rear-wheel drive two-door is still on the table. The current F will soldier on for another three years after receiving significant updates for the 2021 model year, so Jaguar will need to decide whether to stay the course or shift to a mid-engined configuration relatively soon. Either way, enthusiasts will be pleased to hear the F-Type will return.