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Jaguar has released some details on future changes to the XJ, as well as a brief mention of a potential sub-XE sedan.

Head of Jaguar design, Ian Callum, confirmed to Autocar that a replacement for the XJ is being prepared. One issue that is preventing the proliferation of XJ variants is production capacity. That should be taken care of once JLR opens it s new factory in Slovakia in 2018.

Asked about a sub-XE model, Callum stated that his design team is "continuously talking about a smaller Jaguar." Still, there are no plans for a productino car, and Callum also said that the XK is not going to be making a comeback.

http://www.motor1.com/news/60361/jaguar-talks-xj-replacement-and-sub-xe-model
 

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The next generation of ATS is going to be renamed CT something or another and also be bigger than the current model that is out now so that rear leg room is comparable to other luxury sedans like the 3 series which grew in size before its release.
This is an area where the current ATS gets negative comparisons like the XE is starting to get also, Even though China actually gets longer wheel based ATS L that is a few inches longer with more back seat room that is available along side the standard ATS..
The sub CT something or another will only be slightly smaller than the current ATS model but still be Rwd based and built off of the same Alpha chassis as the ATS, CTS and new Camaro so it will be far from being anything similar to the Verano..
All of which was changed the year the ATS came out since other competing luxury sedans actually grew in size around the release date which was 3 years ago with the start of Johan de Nysschen at Cadillac and his restructuring of the sedan models to match the competition..

As you can see Jaguar has also been caught up in this too with the XE being designed after the smaller 3 series like the ATS and then the incoming/current smaller sized sub models..
 
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