In the automotive rumor mill, Carl-Peter Forster, Tata Motors chief executive, has acknowledged that the Jaguar needs a smaller, higher-volume vehicle. It appears that such car is already under development.
Reportedly, Jaguar is working on a new modular aluminum platform that would be shared between the new smaller car, the mid-sized XF and the next-generation XK. This will result in a car that will actually look like a real Jaguar, not like the X-Type which was based off of the Ford Mondeo.
The new baby Jag bears a resemblance to the XF but with curvier rear haunches and XJ-style tail lamps. The power will come, most likely, from downsized and boosted four-cylinder gas and diesel engines, with the current 3.0-liter diesel V6 as a range-topper. A hybrid could also enter the mix.
Once the new smaller Jaguar debuts, all of this will help Jaguar meet the new EU CO2 emissions limits. This could happen as soon as soon as 2012.