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"We need to play in that world," said Adrian Hallmark, Jaguar's global brand director. That World meaning C Class / A4 / 3 Series territory It was in early 2011 reported that Jaguar was working on an compact sedan to rival the 3 / A4 & C Class The upcoming Jaguar sedan is said to be built of lightweight aluminum construction or the PLA (Premium Lightweight Architecture) As for the drivetrain, the Jaguar sports sedan will be rear-wheel-driven (RWD) This junior Jaguar will be based on a new set of components that will also be scaleable enough to be used for the next-generation XF and XJ models. This will allow the company eventually to produce “90 per cent” of all production from one common components set. It is rumored to be named as XS Source: http://www.autocar.co.uk/car-news/new-cars/jaguars-bmw-3-series-rival-edges-closer