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Jaguar has confirmed it is looking into the possibility of a new smaller model to sit below the XF saloon as a nominal replacement for the X-type that was finally killed off early last year.
New Jaguar Land Rover UK boss Jeremy Hicks confirmed early work is being carried out. "There is an opportunity to explore segments down in the market for Jaguar," he told BusinessCar.
"There are no firm answers or commitments. It's project work but serious project work and we're working flat out to explore what opportunities might be there for us."
Hicks said there are no timescales yet as to when there would be a new upper medium rival to the BMW 3-series, but said the project has "got to work" financially in order to progress.
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