Jaguar’s new small sedan to rival the BMW 3-Series and Mercedes-Benz C-Class will be known as the XE, and a prototype has been spotted at the Nürburgring. As our spy video confirms, the new XE is shaping up to be a very capable sport sedan, with the prototype making short work of the German race track’s many corners.

A couple of teaser shots released by Jaguar shows that the styling of the XE will borrow elements from the XF but also feature some sharper lines. The final design is said to be wide, low and very sporty. Don’t worry about the frumpy rear section on this prototype as most of it is added to mask the car’s true shape.

Underpinning the XE will be an all-aluminum platform code-named iQ[Al]. The platform has some commonality with the Premium Lightweight Architecture (PLA) found in the Land Rover Range Rover and was first previewed in Jaguar’s C-X17 crossover concept at the 2013 Frankfurt Auto Show.

So far iQ[Al] has only been confirmed for the XE, but there will be at least three other models spawned from it, including the next-generation XF. Other models spawned from the iQ[Al] platform will be a production version of the C-X17 crossover, a prototype for which has already been spotted, as well as some likely derivatives of the XE such as a wagon or perhaps even a sporty coupe.

Powered by a range of Ingenium 2.0-liter four-cylinder engines coming in both gasoline and diesel flavors, as well as the supercharged 3.0-liter V-6 from the F-Type, the XE should match the Germans and Americans in the sport sedan segment step-for-step. It's thought that the a V-6 variant is being tested here. Rear-wheel drive will come standard, though customers will be able to opt for all-wheel drive, and an eight-speed auto should be standard across the range.

A reveal of the new Jaguar XE may take place as early as the 2014 Paris Auto Show in October. Unfortunately, Jaguar has confirmed that the car won’t reach U.S. showrooms until sometime in 2016.

A reveal of the new Jaguar XE may take place as early as the 2014 Paris Auto Show in October. Unfortunately, Jaguar has confirmed that the car won’t reach U.S. showrooms until sometime in 2016.

WORLD PREMIERE OF ALL-NEW JAGUAR XE ANNOUNCED FOR SEPTEMBER 8, 2014

- The all-new XE will be a Compact Sport Sedan from Jaguar
- The XE will go on sale in 2015 in Europe, and 2016 in North America
- The launch will be held in London on September 8, 2014
- Built on an all-new, aluminum-intensive architecture
- The XE features advanced suspension design which will offer thrilling performance, agile handling and precise, responsive steering, with outstanding levels of refinement

(MAHWAH, NJ) – July 14, 2014 – Jaguar will unveil the latest addition to its sports sedan car family, the Jaguar XE, at a star-studded event in London on September 8th. The event will mark the unveiling of a true driver's car; one that redefines the concept of the sports sedan.

Jaguar will bring levels of innovation with its lightweight construction expertise and sophisticated chassis technology in addition to the new family of Ingenium engines – all designed, engineered and manufactured in the UK.

Built around an all-new, aluminum-intensive architecture, the XE combines thrilling performance, agile handling and precise, responsive steering, with outstanding levels of refinement.

Mike Cross, Chief Engineer of Vehicle Integrity, said, "Jaguar vehicles' have always been renowned for a balance of precise handling and high-quality ride. The XE is the culmination of everything the company has learned over the years. The Integral Link rear suspension provides a combination of supple ride and crisp handling that is unmatched in this segment. We are on target to deliver a vehicle that dynamically outperforms our rivals."

Integral Link rear suspension

The Integral Link rear suspension delivers major benefits over conventional multi-link designs. By providing lateral and longitudinal stiffness, the Integral Link delivers sharp response and handling while retaining a refined, luxurious ride. Many components of the Integral Link suspension are made from forged or hollow-cast aluminum.

Front suspension

Mounted to a subframe with cast aluminum suspension towers, the double wishbone of the front suspension on the XE delivers exceptional handling and road holding. The advanced design is based on the F-TYPE sports car. This design ensures the XE enjoys a similar level of agility and 'connected' steering feel. Like the rear suspension, components are made from cast and forged aluminum.

New Electric Power Assisted Steering

Jaguar is renowned for its steering feel and this will carry on with the XE. The XE becomes the first Jaguar vehicle to be equipped with the latest generation Electric Power Assisted Steering (EPAS). Electric Power Assisted Steering allows a much greater scope for tuning than hydraulic-based systems. Benefits include excellent steering feel, variable steering damping, ease of low-speed maneuvering and the ability to adapt to Jaguar Drive Control settings. EPAS also enables a range of Driver Aid features.

All Surface Progress Control

Even with the best traction control, rear-wheel drive cars can experience a sub-optimal start on very slippery surfaces. For that reason, Jaguar has developed All Surface Progress Control (ASPC). Developed from decades of Jaguar Land Rover experience in off-road traction systems, ASPC can electronically modulate traction with greater precision than a human driver can achieve. The system works like a low-speed cruise control to improve forward progress under slippery conditions.

Jaguar is preparing for the global debut of its entry-level XE sedan on September 8 in London with new information about the vehicle, which is expected to be the most fuel-efficient Jaguar ever made.

Designed around Jaguar’s modular vehicle architecture, the XE is the only car in its class to use an aluminum-intensive monocoque, with lightweight aluminum making up 75 percent of the structure.

Thanks to the lightweight body, the Jaguar XE promises “benchmark levels of ride and handling,” as well as high fuel-efficiency. Jaguar projects a fuel consumption on the NEDC combined cycle of over 75 mpg UK (62.4 mpg US or 3.7 l/100 km) and CO2 emissions of less than 100 g/km. Jaguar didn’t say anything about engines, but the fuel consumption figure most likely corresponds to a diesel unit.

“The Jaguar XE body uses over 75 percent aluminum content, which far exceeds any other car in its class. This gives us a body structure with unrivalled low weight: it’s light but also immensely strong with extremely high levels of torsional stiffness. We’ve made sure our aluminum-intensive body structure exceeds all global safety standards without compromising on vehicle design or refinement,” said Dr. Mark White, Jaguar’s Chief Technical Specialist.

The XE’s bodywork is also said to deliver “exceptional torsional stiffness,” while incorporating “highly advanced suspension systems delivering unparalleled levels of ride quality, handling and steering,” according to Jaguar.

The XE is also the first car in the world to use a new grade of high strength aluminum called RC 5754 which features a high level of recycled material, helping Jaguar achieve its goal of using 75 percent recycled material by 2020.

The new photo released by Jaguar shows the front end of the BMW 3-Series and Mercedes C-Class-rivaling XE featuring an S badge on the grille, which most likely designates a sportier version.

Jaguar said it will mark the launch of the new XE sports sedan with the "FEEL XE" project, an audio-visual spectacle featuring Emeli Sandé that will be seen and heard across the Thames on September 8 when the car will be unveiled.

The special new track will be influenced by the public via social media using the #FEELXE tag, with Jaguar also collaborating with Stella McCartney and Idris Elba for FEEL XE project. Emeli Sandé and Jaguar are looking to the public for inspiration as she begins to write a FEEL XE song about the feeling of “Exhilaration” that is said to be at the heart of the XE.

Using #FEELXE the public can share words, pictures, sounds and films with Emeli through social media (Twitter, Facebook and Instagram) that express what makes them feel Exhilarated.

“I’m excited about working with Jaguar on the FEEL XE campaign and with an incredible British brand. The new XE is innovative in its design and I can’t wait to start collaborating with the world, looking at what defines Exhilaration for them, and premiering the track in London at what is going to be an incredible event!” the singer said.