2017 Jaguar XE Diesel

Every now and again, an upstart luxury sport sedan comes along to challenge the status quo. But the challenge is usually unsuccessful, simply because the established German players are so good at what they do. Nonetheless, we think a happier ending is in store for the all-new 2017 Jaguar XE. The venerable British carmaker has taken dead aim at the segment stalwarts, and the result is a fully competitive sedan with thrilling performance and head-turning style to boot.

The 2017 Jaguar XE's styling evokes that of its bigger sibling, the handsome XF sedan.

The fact that the XE looks as good, if not better, than its rivals can be seen in photos. Where its inner beauty lies, however, is in the driving experience it provides. Its superlative balance between sharp, engaging handling and a comfortable, composed ride is among the absolute best in the entry-level sport sedan segment. This is a car that sets out to make a connection with the driver in a way that competitors have increasingly failed to do.

Another key to its success could be its diverse range of compelling engines. The most popular will likely be the turbocharged 2.0-liter four-cylinder (240 horsepower), but there's also a fuel-sipping turbodiesel four (with a whopping 318 pound-feet of torque) and a stirring supercharged V6 (with 340 hp). The latter two are available with all-wheel drive.

Inside, the XE certainly isn't lacking on the feature content front, but its space and quality leave much to be desired. In particular, the cabin's materials and construction trail those of most competitors by a considerable margin. It feels closer to a Ford Fusion (an admittedly high-quality midsize sedan) than a Mercedes-Benz C-Class.

As such, we think the 2017 Jaguar XE is best suited to those who want to drive an engaging car and look great doing it. It's something fun, something different, and it stands out in a good way. However, there's no getting around the fact that its well-rounded German competitors will probably be a better fit for more car shoppers. These include the BMW 3 Series, Mercedes-Benz C-Class and Audi A4. Taking a look at the Lexus IS or the Cadillac ATS (similar to the XE in many ways) is also a good idea. Inevitably, Jaguar finally has a car that competes in this group, and we think it's definitely worth a test drive.

Standard safety features on the 2017 XE include stability and traction control, front-seat side and side curtain airbags, and hazard lights that automatically activate under heavy braking. A rearview camera is standard on the Premium trim level and above, while the R-Sport further comes with drowsy driver monitoring, blind-spot monitoring, rear cross-traffic alert, front and rear parking sensors, lane departure warning and intervention, forward collision warning, and forward collision mitigation with automatic emergency braking.

The R-Sport trim's standard front and rear parking sensors and blind-spot monitoring with rear cross-traffic alert can be added to the Premium or Prestige trim via a Vision package (which also adds the adaptive xenon headlights with automatic high beams). As noted above, there's also a Driver Assistance package (R-Sport) with additional safety technologies.

Every XE comes with InControl Protect (including SOS emergency calling, Jaguar roadside assistance and stolen vehicle location) and InControl Remote (a smartphone app with vehicle status reports, remote locking and unlocking, and other remote features).

In Edmunds testing, an XE 35t R-Sport came to a stop from 60 mph in 116 feet, which is a bit longer than average for a car with summer performance tires.

The 2017 Jaguar XE is a small luxury sedan offered in four main trim levels: base, Premium, Prestige and R-Sport. Each can be paired with multiple engines, denoted in the model name by 25t (gasoline four-cylinder), 20d (diesel four-cylinder) or 35t (gasoline six-cylinder). Specifically, the base XE comes in 25t or 20d specification, while the Premium and Prestige are offered with all three engines, and the R-Sport comes in 20d or 35t form. Note too that every XE with the 35t engine includes a sport-tuned suspension, which is also included with the XE 20d R-Sport (rear-wheel-drive only).

The base XE starts with 17-inch wheels, three selectable drive modes (Normal, Eco and Dynamic), automatic wipers, automatic engine stop-start for conserving fuel at rest, an electronic parking brake, remote keyless entry, push-button start, a dual-zone automatic climate control, an auto-dimming rearview mirror, eight-way power front seats, a leather-wrapped steering wheel, Bluetooth, the 8-inch InControl touchscreen, and a six-speaker audio system with HD radio, a USB media port and an auxiliary audio jack. A navigation system with InControl Apps is optional.

Every Jaguar XE from the Premium trim on up has one of two powerful Meridian audio systems.

The Premium adds different 17-inch wheels (or 18-inch wheels if you get the XE 35t), power-folding and auto-dimming side mirrors, driver memory settings, a rearview camera, a 40/20/40-split folding rear seatback and an 11-speaker Meridian audio system with a subwoofer.

Going with the Prestige further equips the XE with 18-inch wheels (19-inchers for the XE 35t), metal doorsill inserts, keyless entry and ignition, ambient interior lighting, a power-adjustable and heated steering wheel, heated front seats with four-way power lumbar adjustment, upgraded leather upholstery and the navigation system with InControl Apps.

Finally, there's the R-Sport with its own wheel designs (18-inch wheels for the XE 20d, 19s for the XE 35t), adaptive xenon headlights with washers, LED running lights, automatic high beams, a rear spoiler, distinctive exterior trim details, sport front seats, an imitation-leather-wrapped instrument panel, satellite radio and a number of safety technologies (see Safety section for details).

Some of the higher trims' standard features are offered on lower trims as options. Additionally, the Prestige and R-Sport trims offer Jaguar's Adaptive Dynamics (adaptive suspension dampers and adjustable drive settings), a Black Design package (gloss-black exterior trim), a Comfort and Convenience package (ventilated front seats, heated rear seats, power rear sunshade, power trunklid), a Driver Assistance package (adaptive cruise control, forward collision warning with advanced automatic emergency braking, surround-view parking camera, automated parking system, traffic sign recognition) and a Technology Pack (mobile 3G Wi-Fi hot spot, CD/DVD player, the 10.2-inch InControl Pro touchscreen and a 17-speaker Meridian audio system).

Further standalone options include some of the items from the above packages plus 20-inch wheels, a head-up display, and a handful of special interior trim and veneer selections.

The 2017 Jaguar XE comes standard with an eight-speed automatic transmission and one of three engines. The XE 25t employs a turbocharged 2.0-liter four-cylinder (240 horsepower, 251 pound-feet of torque), while the XE 20d gets a turbodiesel 2.0-liter four-cylinder (180 hp, 318 lb-ft) and the XE 35t steps up to a supercharged 3.0-liter V6 (340 hp, 332 lb-ft).

Rear-wheel drive (RWD) is standard, and all-wheel drive (AWD) is offered on the XE 20d and XE 35t. Jaguar's AWD system is performance-oriented, operating mostly in rear-wheel-drive mode unless traction dictates that power be sent forward.

According to EPA fuel economy estimates, both the XE 25t and 35t should return 24 mpg combined (21 city/30 highway) with RWD. The 35t AWD should return 23 mpg combined (20 city/29 highway). The XE 20d returns 36 mpg combined (32 city/42 highway) with RWD and 34 mpg combined (30 city/40 highway) with AWD.

In Edmund testing, an XE 35t AWD went from zero to 60 mph in 5.1 seconds. This is very quick and typical for a sport sedan with an upgrade engine, but it still trails the all-wheel-drive BMW 340i xDrive's incredible 4.4-second time.