2007 Jaguar S-type 4.2 on 2040-cars

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Is Jaguar's 3 Series-fighter the brand's last chance?

The upcoming line of compact 3 Series-fighters from Jaguar, often referred to as the Jaguar XS, could consist of a sedan, wagon and possibly a coupe and GT model (think BMW 5 Series GT). The car's all-aluminum architecture also will provide the basis for two new sports utility vehicles. Just how important is the much-touted "baby Jag" project to parent company Jaguar Land Rover? A JLR executive reportedly says the brand's survival is directly linked to the success of the XS, codenamed X760, Autocar reports.
The brand's survival is directly linked to the success of the XS.
"If the X760 fails, it will probably be the end for the [Jaguar] brand," the executive says. But Adrian Hallmark, Jaguar's global brand director, claims Jaguar will "build the most advanced, most efficient, most refined car in that [compact luxury sedan] segment. Not almost as good as, but better than the best in the world."

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.

Jaguar to reveal small sedan at Paris show

Small sedans are big business for luxury automakers. The C-Class is the top seller for Mercedes-Benz, much as the 3 Series is for BMW, but Jaguar has historically missed out on that market. Its last attempt, the X-Type, proved woefully inadequate, and Jaguar hasn't attempted to take on that market again since. But that's all about to change.
Coventry has been working on a new small Jaguar for some time now (using test mules like the one above wearing modified XF body panels), and according to the latest reports coming in from the UK, it will showcase the result of those efforts at the Paris Motor Show next October. The show car will take the form of a pre-production concept that is expected to preview the production version very closely before the final item is unveiled at the 2015 Geneva Motor Show.
Tipped to be called XS (somewhat appropriately for the brand's smallest model), the new sedan is expected to be the first to use the company's new aluminum platform previewed by the C-X17. Expect styling to follow along similar lines to said crossover concept and the F-Type sportscar, with eventual sedan, wagon and coupe versions to round out the family.