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Jaguar's next all-new model could be small coupe to rival the BMW 3-series two-door and Audi a5, Autocar has learnt.

At the Frankfurt unveiling of the new XJ saloon, engineering boss Mick Mohan told Autocar that the much-mooted XE sports car is one of several options that the firm is considering - another is a sub-£30k coupe.

"The X-type won't be around forever, and because we don't plan to replace it, there are lots of possibilities for cheaper models," he said.

"Personally, I'd love to make a compact coupe - an Audi a5 or BMW 3-series coupe rival. There's plenty of profit to be made on those cars, and our aluminum platform technology gives us the opportunity to make one. I think we'd make a really good one too."

"For the time being we have to make sure the market takes the XJ to its heart and wait for the recovery to rejuvinate our business a bit. But once the next 12 months are behind us, it's a real possibility."

Mohan was speaking after Jaguar boss Mike O'Driscoll had unveiled the new XJ alongside the XF, and the facelifted XK.

Mohan also ruled out future crossover cars and pseudo 4x4s for Jaguar. "Utility will never be what we're about," he said, " but that still leaves us plenty of avenues to explore. And we've got no shortage of ideas at the moment."

Matt Saunders

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