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.