#XE

Ever since Jaguar launched the XE a few years ago, I’ve held high hopes for it. As much as I, like most auto journalists, dig the BMW 3 Series, I’ve always pined for more compact luxury sport sedan competition.

Mercedes has the C-Class, sure, and Lexus’ IS has often been a solid challenger, especially in certain trims. But the more the merrier, I say, and this particular Jag had a chance at contention.

Perusing the responses to Matthew Guy’s QOTD post about the ideal $40,000 vehicle, three sedans kept surfacing in the comments. All three were compact, all of them had engines of identical displacement, and all of them were restrained by a price ceiling — meaning no optional extras.

Today we’ll narrow the $40,000 field to these three, and see which one you’d buy with your own bank’s money.

When Jaguar’s latest-and-greatest sedan arrives on American shores next spring, it will do so with an extra option on the order sheet — a manual transmission.

According to Car & Driver, the Jaguar XE will get a third pedal and a stick in the middle of the center console that does things. Apparently, there are still enough people out there that know what to do with that thing in the center console that Jaguar believes it will make up between 10 and 20 percent of overall sales.

“It is enough to be worth the investment, and we are happy with our decision,” North American CEO Joe Eberhardt told C&D.

Want a diesel in your Land Rover or Jaguar XE, yet live in the United States? Jaguar Land Rover has heard you loud and clear.

Now that Jaguar bestowed the XE upon the world, the automaker’s engineers and designers are turning toward updating the XF as the first generation draws closer to the end.