1987 Jaguar Xj-sc He Cabriolet on 2040-cars

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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 could replace two of its slow-selling sedans with a compact hatchback

Jaguar needs a home run, and it might merge the slow-selling XE and XF into a single model in a swing for the fences. The company is considering several ways to replace its two smallest sedans, and one option on the table is filling the gaps they'll create with a compact hatchback that would take Jaguar into a segment it's never been in before. Nothing is official yet, and Jaguar still hasn't ruled out developing a direct successor to each model, but British magazine Autocar learned at least two other options are being evaluated. Julian Thomson, the company's design boss, suggested their spot might be filled by a city-friendly hatch that would stretch about 177 inches from bumper to bumper, a figure that would catapult it into a segment dominated by the Audi A3, the BMW 1 Series, and the Mercedes-Benz A-Class. It would lure a new set of customers into the company's global showrooms. "I'd love to do smaller cars, and it feels as though the time is right. Jaguar needs a global product that could appeal to younger buyers, and more females as well," Thomson the publication. Although that's simple on paper, it's a lot more difficult to achieve in real life. "It's a tough sector. You need big numbers, which means big factories, and a big organization to sell them. But that's definitely where I would like us to be." Jaguar would need to find a cost-effective way to build the model. Developing an architecture from scratch is one possibility, though it's an expensive one for a company whose financial foundations are shaky at best. It could use its new MLA platform if it's flexible enough to underpin a small car, or it could ask BMW — which it's linked to via several on-going partnerships — to use the front-wheel-drive UKL architecture found under the aforementioned 1. One point the original report doesn't address is that, while a hatchback in the vein of the A3 would do well in Europe, it would fall flat on its face in the United States. That's why Audi, BMW, and Mercedes-Benz all added a trunk to their Euro-flavored hatches for American buyers who prefer three-box sedans. Jaguar would either need to do the same, meaning it would replace two sedans with a hatchback turned into a sedan, or it would end up giving up thousands of sales in one of the world's largest car markets, which would be counterintuitive. Another possibility floated by Autocar is replacing the XE (pictured) and the XF with a compact sedan described as eco-focused.

Jaguar brings the new XKSS to Jay Leno's Garage

Jay Leno is no stranger to the Jaguar XKSS, having driven Steve McQueen's no less. But that doesn't mean he would turn down a chance at another one, and certainly not the continuation model seen in this week's Jay Leno's Garage. This particular XKSS is the first of nine cars built to complete the car's original 1957 production run, which was cut short in a factory fire. The video covers many of the fascinating details that went into recreating the XKSS. Among them are Jaguar's acquisition of an original D-Type engine block to make new castings, and even replicating the type of type of steering wheel used back in the day. Most of the vehicle is made to be identical to the originals, with only a few changes made for usability. This includes better quality materials for the brake lines, and ethanol-resistant materials for the fuel tank. Because this particular XKSS was on its way to the LA Auto Show (where we saw it debut at the Petersen Museum), Leno didn't get a chance to take it for a spin. However, snippets of his drive in McQueen's car were added, since it's the same car for all intents and purposes. What Leno emphasizes is how modern the car feels, also noting that it feels lighter than many other classic Jaguars. To see all the details and impressions, check out the video above. Related Video: