Jaguar’s X-Type replacement still under development image

Jaguar has reconfirmed that it is developing an X-Type replacement that would rival BMW’s 3 Series.

A Jaguar source told Auto Express that development of a 3 Series rival is still on track, and that the carmaker is also working on a nine-speed automatic gearbox. “Look at the 2.2-liter diesel and look at engines like the new 2.0-liter turbo and you can see we’ve got the powertrain platform already for a smaller car,” the unnamed source was quoted as saying by Auto Express.

The small Jaguar, which would sit below the XF in the line-up, will be offered with a choice of rear and four-wheel drive, just like the recently launched XF and XJ AWD models. Jaguar’s 3 Series rival will have saloon and estate bodystyles, but it could also be a base for a road-based SUV to further boost sales. The platform could also be used by Land Rover to make the DC100 SUV Concept a reality.

Jaguar executives have also confirmed that the carmaker is developing a nine-speed automatic gearbox, which will debut somewhere in 2014. Once that gearbox is launched, Jaguar doesn’t plan to add any more ratios on its future transmissions.