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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.

Driving JLR Classic's factory-restored Jaguar Reborn E-Type

COVENTRY, England – Moviegoers of a certain age will likely draw an association between the flag-emblazoned E-type “Shaguar” driven by Austin Powers and the carÂ’s image as an icon of Swinging-Sixties cool. For sure, the Brits cling to this era, recalling a time when everyone from The Beatles to the nationÂ’s car manufacturers were successfully exporting English swagger to the world. As the 60th anniversary of the E-typeÂ’s first appearance in 1961 approaches, attention is again focused on this golden age for British automotive engineering and JaguarÂ’s increasingly industrialized approach to leveraging its heritage. That takes the form of an impressive modern facility on the outskirts of the brandÂ’s hometown, where classic Land Rover, Range Rover and Jaguar vehicles are “Reborn” in nut-and-bolt factory restorations. This isnÂ’t a few old hands turning spanners in a dusty corner of the main factory — instead customers can go direct to Jaguar Land Rover Classic Works, order the Reborn vehicle of their dreams and sit patiently for the spectacular return on their considerable investment. In the case of the Reborn E-type driven here, that starts at around $400,000, though that figure can rise considerably if youÂ’re fussy about the vintage of the original car and want one based on a more sought-after early model. For the real fanboys Jaguar is even offering Drivsix matched pairs of restored E-type 60 Editions to celebrate the coupe and roadster that were famously driven direct from the factory to the Geneva unveiling just in time for Jaguar founder Sir William Lyons to reveal it to the world. That even Enzo Ferrari was moved to acknowledge its beauty adds to the romance of that moment, and explains why Jaguar is so keen to celebrate it. But can the Reborn E-type do justice to such myth and legend? And is factory original really preferable to the restomods built by independents like Eagle? Wheel time in a gorgeous Reborn 1965 4.2 Fixed-Head Coupe on an authentically grey and overcast English day is my chance to find out. The E-type may have earned EnzoÂ’s respect for its looks but, ever the wily engineer, he will likely have been paying closer scrutiny to what was under those slinky panels. Jaguar had demonstrated it could beat the worldÂ’s best in sports car racing with multiple Le Mans wins in the 1950s. As the new decade dawned, it looked to have ambitions to do the same in showrooms with a product that made MaranelloÂ’s finest seem like old tech.

2014 Jaguar F-Type, Project 7 Concept snarl in Jay Leno's Garage

Jay Leno gets to drive a lot of nice cars, and the Jaguar F-Type V8 S he pilots in the latest episode of Jay Leno's Garage is no exception. Eric Johnson, vice president of Jaguar Western Region brought the car to Leno's garage, which impresses the comedian with its 5.0-liter V8 that makes 495 horsepower, 460 pound-feet of torque and a muscle car-like roar.
But there's a surprise this episode: Leno secured a drive in the Project 7 Concept at Pebble Beach this year, and the experience was caught on video. Based on the F-Type, the Project 7 is a functional concept car that nods to Jaguar's seven wins at Le Mans and features bespoke styling cues, a special exhaust system and, perhaps most importantly, 50 more horsepower from the supercharged V8.
Watch the latest episode of Jay Leno's Garage in the video below. You'll need a little over 23 minutes to see the whole thing.