Jaguar will likely make a decision on the development of a smaller saloon and possibly a crossover model later this year.

Brand director Adrian Hallmark, said: "If you look at the way the market is going a smaller model is a certainty while a crossover is being considered but not yet confirmed.

"We already have the money confirmed to develop a new body system for a new generation of cars. What styles we put on this is not yet decided and we will take a few more months to think about this.

"But if you look at the market globally, saloons still dominate while crossovers are showing the biggest growth in the luxury segment."

Hallmark added, however, that the company will stick closely to its heritage - front engine, rear-wheel-drive luxury vehicles - but that all-wheel-drive will probably feature in the future.

He said: "For us to be a full player in this segment we have to have all-season capability."

Jaguar will not call on the expertise of its stablemate Land Rover for the technology he said.

"Off road four wheel drive and high performance 4x4 are very different things but we may be able to find synergies are some point in the future," Hallmark said.


Just five weeks into his new job as brand director, Hallmark said he is optimistic for the New Year.

"Last year was good and 2011 will be even better thanks to new model introductions. Sales last year were about the same as 2009 but we did not launch the XJ until the middle of the year and the X-type was on run-out.

"We will now have a full year with the XJ and we are freshening up some of our others models. We will also introduce a smaller diesel engine later this year."