First Drive: Jaguar’s new XE puts it up to the Germans

Fourteen summers ago, Jaguar took a big, right-hook swing at mighty BMW. It was backed by the financial might of Ford, borne aloft on shared engineering and a state-of-the-art factory. And the punch failed to connect. BMW carried on, as it ever does, as the best in the sports saloon business. Jaguar's supposed hay-maker, the X-Type, fell, battered and bruised, to the canvas.

We have come a long way since then. The X-Type's failure (as much to do with the lack of a well-defined model range as it was with old-fashioned styling and the knowledge that it was a Mondeo udnerneath) drove Jaguar's finances perilously close to collapse and caused Ford to sell it, and closely related Land Rover, to Indian conglomerate Tata. Since when, things have improved rather. A string of well-received models (XF, XJ, F-Type) have lifted Jaguar's image and sales and the brand is generally enjoying a major resurgence.

But one box remained un-ticked, one challenge un-met. The BMW 3 Series. The world’s pre-eminent sporting saloon is the foundation on which BMW’s staggering success is built, and it’s a success that Jaguar remains eternally jealous of. BMW after all now occupies the sort of ground that Jag made its own in the fifties and sixties and the British brand wants so badly to knock the German giant at least a little bit off its perch.

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Inside the new Jaguar XE the space is good, both front and back and the new touch-screen infotainment system is a massive improvement on what went before

So that is why we are here again, watching as a leaner, fitter, harder-punching Jaguar climbs back into the ring, and the bell sounds seconds out…

The XE has been very carefully crafted into as direct a rival to the 3 Series as could possibly be. The dimensions of the two cars are within millimetres of each other, the weight to within a few kilos (surprisingly so, given Jag’s extensive use of aluminium for the XE’s chassis and body). Crucially, this time, the XE is rear wheel drive and instead of lots of Ford Mondeo bits under the skin, it’s actually more closely related to the rambunctious F-Type sports car. Already, Jag’s game has been raised.

Diesel is a match for BMW 320d

Crucially, especially given the need to strong sales to the fleet and user-chooser sector, the engines are right on the money this time around. Supplied by a purpose-built new factory, this is our first taste of the Ingenium engine range into which Jaguar (and Land Rover) has sunk so much time and effort. This four-cylinder 2.0-litre turbo diesel has 180hp and 430Nm of torque, which means it has the 320d’s jugular well within its grasp. First impression? It’s smooth but a tiny bit noisy, gurgling noticeably on startup. To be fair, so does the 3 Series’ diesel and that, plus a distinct turbo whine noise at higher RPM are apparently currently on Jaguar’s to-do list. These were late preproduction cars, so we’ll have to wait until we’ve sampled a finally signed-off version before making a call on that.

On the upside, power is elastically delivered and the fuel consumption appears adequate to put a realistic 1,000km under the wheels between refills. Our automatic test car scored an impressive 109g/km Co2 rating while the manual version will do a tax-and-BIK-friendly 99g/km.

The best part though is the steering. Jaguar’s engineers, chatting over dinner, were replete with stories of the effort put into not just the design of the rack itself and the electric power steering setup (developed in tandem with the F-Type’s) but also how it relates to the hardware of wheels, uprights and suspension arms. The combo of double-wishbones at the front and a new integrated-link axle at the back has been supposedly designed to maximise steering feel and handling precision without sacrificing ride comfort.

Well, it works. In spades. Although the steering has that traditional Jaguar lightness, it only takes a few metres before you realise that it’s just bursting with genuine road feel and feedback.This is a car that delights in delighting the keen driver and the way it can be guided both by hands and feet through a series of tricky switchback is little short of wonderful. Jaguar’s engineers weren’t just filling us with PR puffery - this car stands a very good chance of unseating the 3 Series when it comes to sheer driving enjoyment.

Ride is calm and firmly damped

And yet it’s comfy. On both 18” and 19” alloys, the XEs we tried rode with a calm, firmly-damped precision. Even a long section of cobbled streets in a village perched high in the hills above Lisbon couldn’t get the suspension to misbehave.

Thus far, our only quibble is with the cabin. Space is good, both front and back (although watch your head on the swooping roofline when getting in the rear) and the seats are comfy and supportive. Quality, even though these cars were not fully representative of final production models, seemed absolutely fine and the new touch-screen infotainment system is a massive improvement on what went before. No, the only problem here is a lack of distinctness. Get into an Audi and you could only be in an Audi, likewise a BMW. Merc's C-Class, another XE rival, has one of the best interiors of any car, at any price while the left-field Lexus IS300h has a classy, gorgeous interior. The XE's cabin is just a tiny bit 'meh.' Nothing wrong with it, but equally nothing very special. Perhaps it's that way to avoid putting-off anyone unsure of the brand?

There should be a few of those though. Jaguar Ireland, even without a price being settled, is talking of 450-500 sales in a full year, possibly as many as 600 with a following wind. These numbers are small beer to the Germans, but almost unheard of for Jag in Ireland. There is no question that the XE deserves such sales attention. For its steering alone, it would be a star but combined with handsome looks and an impressive attention to detail, this could just put a dent in BMW's jaw.

The lowdown: Jaguar XE 2.0D 180hp R-Sport

Power: 180bhp

Torque: 430Nm

0-100kmh: 7.8 sec

Top speed: 228km

Claimed economy: 4.2 L/100km. (67.3mpg)

Co2 emissions: 109g/km

Motor tax: €190

Price: Expected to start below €40,000

Our Verdict: Suddenly, Jag has a serious competitor in one of the most sought-after sectors. An astounding comeback.