I guess they wanted to use "XS" as the codename for the test mule's, car makers do it quite often, wouldn't be surprised if that was their real intention here.
i doubt itbut is there legitimately room below the XE regardless? There is a real opportunity to distance themselves from mercedes as they dip below 30 grand..
watering down the brand is something I rather they not do. si think it might water the brand down too much
but who knows maybe they will go for it.