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This mule is the first evidence Jaguar is working on a 3 Series fighter

Rumors of an entry-level, BMW 3 Series-fighting Jaguar sedan have been floating around for quite some time, but thanks to our intrepid spy photographers, we now have visible proof that such a model is, in fact, in the works.
Despite this tester's XF fittings, it's clear that what lies beneath is an entirely different beast. The doors have been shortened, roofline adjusted, rear deck lopped off and exhaust replaced, giving us a better idea of the new sedan's smaller dimensions and details. The new Jag, which may be dubbed "XS," is expected to ride on Jaguar's PLA (Premium Lightweight Architecture) platform, touting weight-saving materials that should do a lot to keep overall heft to a minimum. Both turbocharged four- and supercharged six-cylinder powertrains are expected to be on tap.
Codenamed X760, the new small sedan will reportedly hit the market in 2015. Earlier reports have indicated that a new crossover - Jag's first ever - riding on the same platform will arrive shortly thereafter, so that suggests that the platform will be fitted with all-wheel drive as well.

Jaguar planning additional models, engines

Jaguar is in the midst of a product offensive, rolling out the new XE and XF sedans while preparing the upcoming F-Pace crossover. But it's not about to sit on its leather-upholstered laurels. According to Motor Trend, the British automaker has a slew of projects in the cooker. For starters, there will reportedly be more versions of the flexible new Ingenium engine family. The lineup is being launched with gasoline and diesel four-cylinder engines, but is tipped to breed smaller three-cylinder versions as well to slot into a variety of Jaguar and Land Rover models. More intriguing, however, is the suggestion that Coventry is planning to replace its long-serving 3.0-liter supercharged V6 with a new straight six engine that could go turbocharged – which would make some sense out of the 35t moniker being worn by the supercharged XE. Of course Jaguar is going to need some new vehicles to slot those engines into, and MT suggests there are several possibilities under consideration (if not actual current development). The XE could breed wagon, coupe and convertible versions, as well as an SVR variant to take on the the BMW M4, Cadillac ATS-V et al. If the F-Pace proves a success, it could lead to larger and smaller crossovers in the future. The next XK is tipped to grow larger and go up-market. There, it would compete with the likes of the Bentley Continental GT, Rolls-Royce Wraith and Mercedes S-Class Coupe, while steering clear of the smaller F-Type. Related Video:

Jaguar Land Rover in talks for Southern US factory

Jaguar Land Rover is getting serious about global expansion, and that means it can't only build its vehicles in the UK anymore. The British automaker is cutting the ribbon at its new plant in China tomorrow, marking the opening of its first factory outside the UK. In 2016, it will open another factory in Brazil. But the latest intel has it that JLR is looking into a US factory, as well.
The report, which comes to us from the Sunday Times by way of Automotive News Europe, indicates that the company is evaluating locations for a North American factory, with options centering around Southern right-to-work states like South Carolina, where BMW operates its plant in Spartanburg and a wide array of other automotive operations are based as well. The JLR plant would reportedly ramp up to a capacity of 200,000 units per year.
In related news, while that new plant JLR is inaugurating in Changshu, China, is initially slated to produce the Range Rover Evoque, it is also expected to start building the new Discovery Sport as well - just like the Halewood plant in the UK that has handled Evoque assembly from the start and which just built its first Discovery Sport, as well.