Rendered Speculation: Jaguar's 3 Series rival

There's a pretty hefty rumor claiming Jaguar is aiming to take on the BMW 3 Series with a new mid-sized fighter of its own. According to Auto Express, the suits at the big cat's parent company, Tata, have already given the project the go-ahead. The new machine will serve as a suitable replacement for the long-dead X-Type and sit below the XF in the Jaguar chain of command. Beyond that, there are few details in terms of what to expect if and when it hits production.
But that hasn't stopped Auto Express from putting forth a few possibilities. According to the site, it's entirely possible that the baby Jaguar could get its power from either a turbocharged, Ford-sourced four-cylinder gasoline engine or a more potent turbo-diesel six-cylinder hybrid drivetrain.

Hey, dreaming is free.

Behind either miracle mill would be a ZF eight-speed automatic gearbox. We'll supposedly know more about the car sometime soon as AE reports the new Jaguar will be in dealer lots as soon as 2012.

[Source: Auto Express]