Review: Jaguar XE leaps past established sport sedans

• Prices start at $34,900. $48,100 as tested
• The XE introduces Jag's newest vehicle architecture and engine family to American buyers
• Competes with Audi A4, BMW 3-series, Cadillac ATS and Mercedes C-class
• Chassis and suspension deliver superb balance of handling and comfort

Jaguar makes building a great sport sedan look easy with the ★★★★ 2017 XE 35t AWD. It's Jag's first foray into a hyper-competitive market segment that includes cars like the Audi S4, BMW 3-series, Cadillac ATS, Infiniti Q60S Red Sport  and Mercedes-Benz C-class, and it just may be the best.

The XE takes the magical combination of smooth ride and sporty handling that’s made Jaguar a favorite for decades and fits it into a smaller package than the brand’s luxurious big cars.

The sleek sedan is the first vehicle to use a new aluminum-intensive architecture Jaguar Land Rover developed to underpin a range of models. It also introduces the automaker’s new four-cylinder gasoline and diesel engines.

XE prices start at $34,900 for a rear-wheel-drive model with a 240-hp 2.0L turbocharged four-cylinder engine and rear-wheel drive. A 180-hp 2.0L turbodiesel starts at $36,400 for rear-drive and $38,900 with AWD. An eight-speed automatic transmission is standard on all XEs. All prices exclude destination charges.

Stepping up to a 340-hp supercharged 3.0L V6 raises the base price to $41,700 for rear-drive and $44,200 AWD.

I tested a well-equipped XE 35t AWD Prestige that cost $48,100.  It had features including leather upholstery; memory for driver settings; a 10.2-inch touch screen; navigation; sun roof, voice recognition; Bluetooth phone and music compatibility; 825-watt Meridian audio; heated front seats; blind spot and cross traffic alerts; front and rear parking assist.; wi-fi hot spot; adaptive dampers; and 19-in. aluminum wheels.

My test car’s price was competitive with the AWD ATS and lower than similarly equipped models of the 3-series and C-class.

The XE is smaller than previous Jag sedans, which competed with larger and more expensive cars like the BMW 5-series and Mercedes-S-class. Compact sport sedans like the XE are the best-selling luxury cars around the world. The XE is a welcome, if belated addition to Jag’s model line. It’s destined to become one of the brand’s best-selling models alongside the new F-pace SUV.

The XE’s styling is understated and consistent with Jag’s larger XF and XJ sedans. Its long hood, short rear deck and big grille look at home next to traditional Jags. The XE is a star on the road, but would be easy to overlook in a parking lot.

The interior is comfortable, but similarly understated. My car had black leather, low-gloss black wood and a few pieces of bright trim. The big touch screen is easy to read, but could be more responsive. The climate controls are simple and easy to use, but audio would benefit from less reliance on the touch screen and a couple more buttons and dials.

There’s not much storage for glasses, phones and the like, but the front seat is roomy and accommodating to people. Rear legroom is limited. The trunk is one of the smallest in its class.

The V6’s 340 hp is in the middle of the pack, as is the car’s claimed 5.0-second 0-60 m.p.h. time. The XE’s flowing, smooth handling makes driving fast through twisting mountain roads effortless. The well-balanced chassis and quick steering are equally at home on the highway and around town. The XE is an easy car to drive fast, and a comfortable car for long drives, as long as you’re in the front seat.

The EPA rates the XE’s fuel economy at 20 m.p.g. in the city, 29 on the highway and 23 combined. The key combined figure is in the middle of the class, trailing the BMW and Mercedes but beating the S4 and Q60S Red Sport. The XE also beat the ATS, but Caddy’s V6 runs on regular gasoline, which the EPA predicts makes it the most frugal car in the segment.

With all that going for the XE, don’t expect the appealing introductory prices to last. Jag priced the XE modestly because it’s a newcomer compared to nameplates with decades of equity.

This new cat is too good to remain a bargain for long, though. If you’re in the market get one now so your late-adopting neighbors will be jealous of the deal you got when you pounced on it.

Contact Mark Phelan: 313-222-6731mmphelan@freepress.com. Follow him on Twitter @mark_phelan.

Behind the Wheel

2017 Jaguar XE 35t AWD Prestige

All-wheel drive five-passenger sport sedan

Price as tested: $xx (excluding destination charge)

Rating: ★★★★ (Out of four stars)

Reasons to buy: Ride; handling; value.

Shortcomings: Rear legroom; interior storage; touch screen sensitivity

Competitive EPA fuel economy ratings

(Automatic transmission, all-wheel drive V6-powered models)

Jaguar XE 3.5t AWD Prestige: 20 m.p.g. city/29 highway/23 combined. Premium gasoline.

2016 Audi S4: 18/28/21. Premium gasoline.

BMW 340i xDrive AWD: 21/21/25. Premium gasoline.

Cadillac ATS 3.6L Premium AWD: 19/27/21. Regular gasoline.

Infiniti Q50 3.0T Red Sport AWD: 19/26/21. Premium gasoline.

Mercedes AMG C450 AMG 4Matic: 21/29/24. Premium gasoline.

Source: www.fueleconomy.gov

Comparative base prices (excluding destination charges)

(Automatic transmission, all-wheel drive V6-powered models)

Jaguar XE 3.5t AWD Prestige: $48,100

2016 Audi S4: $49,200

BMW 340i xDrive AWD: $47,800

Cadillac ATS 3.6L Premium AWD: $49,210

Infiniti Q50 3.0T Red Sport AWD: $53,300

Mercedes AMG C450 AMG 4Matic: $50,800

Source: Autotrader

Specifications as tested

Engine: 3.0L 24-valve supercharged 4-cylinder

Power: 340 horsepower @ 6,500 r.p.m.; 332 lb-ft of torque @ 4,500 r.p.m.

Transmission: 8-speed automatic

Wheelbase: 111.6 inches

Length: 183.9 inches

Width: 72.8 inches 

Height: 55.7 inches

Curb Weight: 3,795 lbs.

Where assembled: Solihull, England