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It's hard not to be skeptical when we read a report in Automotive News like this one: "Work also is under way on a compact sedan, but that car is a few years away from production, Jaguar officials said."

Word is bumping around the internets that Jaguar may be interested in dusting off a sub-XF model. Doing so would put the big cat into direct competition with the mighty BMW 3 Series – a feat Jaguar attempted once before with the ill-fated X-Type. But according to Adrian Hallmark, the automaker's new global brand director, the company won't be repeating past mistakes.

Tata Motors chief executive Carl-Peter Forster has acknowledged that Jaguar needs a smaller, higher-volume vehicle and it appears that just such a car is already under development. Unlike the less-than-stellar X-Type which was based on the second-generation Ford Mondeo, the new car should actually be a real Jaguar.

More exciting than that is reported talk about expanding the Jaguar lineup with more choices and even a smaller, baby Jag. Autocar quotes Kant as saying, "It has to happen if you want to keep the brand alive. We need an entry-level car." Tata and Jaguar could possibly work with another automaker on an entry-level rear-wheel-drive chassis so the storied British automaker could produce a competitor for the BMW 3 Series. After the new XJ is officially launched, the next step will reportedly be an X

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