Jaguar has generally only sent better equipped versions of their models to the US market, reserving smaller engines for the European market where high gas prices have made them more appealing. That pattern looks set to continue with a new entry level version of the XK. The 3.5L version of Jaguar's V-8 engine that is available in the XJ in some European countries is likely to be installed in the coupe and convertible.
The smaller engine is expected to put 256hp and have an exhaust system tuned to provide a sportier sound for the GT even with the seven second 0-62 MPH acceleration. The new model will probably only be available in Germany, Portugal, Austria, Italy, Belgium, Switzerland and Luxembourg and come in at about €10,000 less than the 4.2L version.