Report: Jaguar evaluating entering the luxury sports subcompact wars with a front-wheel drive entry model

Europe is apparently cracking down even harder on EU CO2 regulations, much like the US has their CAFE requirements. And Jaguar is really feeling the weight of these restrictions since fuel economy was never really a concern for the brand until society began bearing down on them.

That said, word via AutoCarUK is that Jaguar is on the verge of introducing a new front-wheel drive compact to help the brand meet the CO2 regulations of the EU. It will also allow Jaguar to participate in an emerging market: the luxury sport subcompact segment, currently occupied by the Mercedes-Benz CLA-Class and the Audi A3 sedan, with entries from BMW, Infiniti, Lexus, and MINI presumably on the way.

The issue in the decision lies with—again—making it a viable business case. No time frame was provided for the potential frugal compact. But the recent growth in the market exhibited by the entries provided by the industry leaders, Jaguar will soon run out of time.

Jaguar’s Ian Callum has expressed his great interest in producing a small car to compete against the Mercedes-Benz CLA. Though he emphasized that a lot is going on behind the scenes at Jaguar-Land Rover. Either way, it’s on the docket for consideration.

– By: Chris Chin

Source: AutoCarUK

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  • cad4life

    its like the 80s again, when cadillac/lincoln did this fwd