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2016 Jaguar XE is ready to stalk the competition

The XE wears some of the best styling elements from Jaguar's current litter.
Big sedans and sports cars. Jaguar has been known for those two things since the company's name was birthed in 1945. Stylish saloons like the Mark 2 and performance machines like the E-Type make up the brand's heritage, but the compact sedan market is one where the British marque has lacked great product.

Jaguar's design boss wants to build another sports car model

The global sports car segment is facing a strong, glacial headwind, but Jaguar believes smoother waters are right around the corner. One of the company's top executives predicted the market will recover in the coming years, and he wants his team to be ahead of the curve when that happens. "Jaguar will always build sports cars. I'd love to do more than one," affirmed Julian Thomson, the man who replaced Ian Callum at the head of the brand's design department, in an interview with British magazine Auto Express. The only sports car currently in the Jaguar portfolio is the F-Type. While enthusiasts still love sports cars, the run-of-the-mill buyers that keep automakers profitable have rejected them in favor of crossovers and SUVs. And, requests for cleaner, more efficient cars make developing fun cars considerably more difficult; even Mazda is looking into taking the Miata into hybrid or electric territory. Jaguar faces the same challenges, but Thomson expects the sports car segment will rise up from its ashes when motorists realize they're trapped in a sea of crossovers. "In this day and age of electrification and autonomous technology, a part of me thinks there may be a resurgence of people enjoying transportation for transportation's sake, and driving for driving's sake," he said. "Whether that makes the market bigger I don’t know, but I think there is a threat to volume production cars, and they are going to struggle to find a position on what they do. IÂ’d hope that truly special and luxury cars, sports cars, will find a place where they have the option to be more exotic." He stopped short of confirming a second sports car is under development, so it's far too early to pinpoint the segment it would compete in. In the meantime, Jaguar just gave the F-Type a facelift (pictured), and its vehicle development team has already started working on the model's successor. The rumor mill has started spinning; we've heard reports of the nameplate pulling a Corvette by going mid-engined, adopting BMW's 4.4-liter V8, and getting a battery-electric powertrain. The latter option would slot neatly into Jaguar's electrification push, but Thomson hinted it's easier said than done. He explained making an electric sports car with a huge amount of power, like the 2,000-horsepower Lotus Evija, is not the answer.

Jaguar Classic's 3.8-liter engine block costs nearly as much as a new Jetta

Jaguar is helping collectors restore its vintage models by resuming production of the 3.8-liter six-cylinder engine block it built between 1958 and 1968. Called XK, the straight-six originally powered half a dozen models (including the famous E-Type), and its modern recreation costs nearly as much as a new compact sedan. Wearing part number C22250, the cast-iron block is built to the original's specifications by Jaguar's Classic division, and it comes with a 12-month warranty. Sourcing a used block would likely be markedly cheaper than ordering a new one from the factory, but enthusiasts who value originality above all will appreciate the fact that it comes certificate of authenticity. Customers who send the company proof of vehicle ownership can even retain the serial number from the engine they're pulling out, though an asterisk will identify it as a replacement. Jaguar built the XK engine for several decades, but the 3.8-liter variant only remained in production for 10 years. It powered cars like the surprisingly quick XK 150 roadster, the stately Mark IX and early examples of the E-Type, though its displacement grew to 4.2 liters in 1964. As of this writing, only the 3.8-liter XK is available new. If the E-Type you're painstakingly restoring deserves nothing less than the best, or if you think a 3.8-liter block makes an awesome coffee table, you'll need to send Jaguar a check for GBP14,340 including taxes, a sum that represents approximately $17,800 at the current conversion rate. Enthusiasts will also need to source pistons, connecting rods, a crankshaft and a complete cylinder head, among many other parts, so the cost of a full rebuild will lie well beyond the $20,000 threshold. For context, Volkswagen charges $18,895 for an entry-level Jetta. Related Video: