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Jaguar's crucial new compact saloon has been spied in testing for the first time. The new baby Jaguar, prototypes of which have been seen in both the UK and  Sweden, will be a compact and lightweight rear-drive saloon that will spawn other body styles and spearhead a significant sales expansion for the brand.

However, the new line won't be an obvious rival for established premium cars such as the BMW 3-series and Audi A4, according to senior sources. It will attempt to outpoint the German opposition by emphasising its lightweight aluminium construction and cutting-edge, super-frugal four-cylinder engines.









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