With the immense success of premium hatchbacks and the expected triumph of BMW’s new 1 Series, Jaguar has announced that it will not be building a small hatchback to rival its competitors.

With the immense success of premium hatchbacks and the expected triumph of BMW’s new 1 Series, Jaguar has announced that it will not be building a small hatchback to rival its competitors.

Jaguar believed that the introduction of a smaller model, such as the Audi A3 and Mercedes-Benz C-Class sports coupé, could devalue the brand and affect the resale values of its existing models.

The marqué said its compact executive model, the X-type, would remain the smallest offering in its range. Instead it would concentrate on developing its larger models including a replacement for the S-type as well as a longer-wheelbase XJ, according to .

Uncovered for the first time at the New York Show earlier this month, the latest XJ’s wheelbase has been stretched by 125mm. All the extra space will go to the rear passengers while it is has also been made slightly taller to provide more headroom.

The longer XJ will initially only in be available with a 298 kW supercharged 4,2-litre V8 engine. The 223 kW version of the V8 – currently reserved for US buyers, could well be offered as right-hand-drive if the demand is great enough.

Original article from Car